The National Democratic Alliance government was forced to popularise the term “roll back” during its five years in power as the allies of the Bharatiya Janata Party resisted all moves to increase fuel prices. The pattern continued with the United Progressive Alliance-I. Now the BJP and the Congress’s own allies within the UPA-II are making the same demands, as is the rest of the opposition. The Union finance minister announced a hike in duties on petrol and diesel in his budget which will lead to a price hike.
The opposition and the allies have both argued that this will lead to a rise in prices and put additional pressure on a populace already reeling under rising inflation. That is possibly true. It is also true that the government subsidies on petroleum products are a major financial burden. In the long run, it’s a head I win tails you lose situation as far as the country’s fiscal health is concerned. Hard decisions have to be made and stuck with sometimes.
So far, Pranab Mukherjee has stood firm but it is not
unlikely that once pressure starts from the ‘aam aadmi’
corner that he might have to compromise a bit. Perhaps, the compromise has been written into the budget and it will be a gain some, lose a little game to pretend that everyone is
finally a winner.
Two of the allies who are protesting — Mamata Banerjee of the Trinamool Congress and Karunanidhi of the Dravida Munnetra Kazhagam — are looking to be potential winners when their states go to the polls in 2011. The Left is desperate for something to save its skin in West Bengal and finds itself, oddly enough, not only on the same side as arch-rival Banerjee but also with ideological opponents, the BJP. The BJP meanwhile, looking for a few pegs to get it back on track in popular perception, is making a nuanced argument between not wanting to disrupt the government while batting for the poor and less privileged.
Politics of course is often less about good sense and more about making a good impression, however temporary. The fact remains that prices of household goods — regardless of government figures and indices — have become uncomfortable for most. This gives all political parties a handy stick with which to beat the government. Right now the most popular target is Union food and agriculture minister Sharad Pawar, whom interestingly enough Mukherjee has also blamed by pointing out that our public distribution system is faulty.
Whatever the outcome, the political climate is now hot.
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