THE PERENNIAL TROUBLE FOR UPA - THE LEFT:

THE PERENNIAL TROUBLE FOR UPA - THE LEFT:


Inflation has been a cause of major worry for the UPA ever since it assumed office 4 years ago with the outside help of the Left Parties.  To compound this problem of growing inflation, or probably the cause of inflation is the rise in international crude oil price.  The point of conflict between the government and the Left is who should be burdened by the unprecedented price rise in crude oil market.

The Government wants to increase the prices of petrol, diesel moderately to ease the burden on the government and the oil marketing companies(OMCs) whereas the Left Parties want the government to reduce the levies on petrol and diesel which constitute almost half of their prices.  But the government is not willing to sacrifice its resources considering that there are many new plans like farm loan waiver to be executed.  So the resulting price rise is not a surprise.  The price of a barrell of crude oil rose from $27 in 2004 to $130 now which is a five fold increase.  The central government has asked the states to decrease the levies, but they point a finger at the central government to follow its own advice.  

In my opinion, it is the people who bear the cost of dearer petrol be it in the form of price hike or tax cuts.  In the former case the consumers bear it and in the latter case the honest tax payers bear it.  Obviously the former case is better.

The friction between the left and UPA is hottening up thanks to th nuke deal controversy price hike and the soaring inflation.  Left is to the UPA what PMK is to DMK.  DPA can survive without PMK so DPA decided to snap ties with it but the misery bogging our PM and co. is that they are at the mercy of the Left and the Government could topple any time.  So what is best for UPA is to avoid another price hike and reduce taxes and duties to ease burden on OMCs.

COMING SOON: GUJJAR RESERVATION CONTROVERSY.
COMING SOON: BAL THACKAREY IN NEWS AGAIN.