40% of all government revenue, both at the state and centre, is accounted by petroleum products. So a reduction in revenue implies less revenue for running the government, development programs, maintaining the army etc
Despite that, the central government has done just that - marginally affecting a cut. The question is whether state governments will follow.
And by the way - the base price of Rs 22 which are being touted is the subsidized price - that insulates India from oil price shocks. You cannot subsidize for ever - otherwise like in 1990 - our fiscal situation will be so bad that we need to pledge our gold.
Besides, India is a net oil& gas importer. Leave alone countries like India, even net oil & gas exporting countries like Indonesia, Malaysia, Nigeria etc have undertaken steep internal pricing of oil products. In fact, riots broke out in Indonesia following this step!
The PM should have done more by even increasing the price. Unless petrol finds its true market value, we do not value the product and alot of waste occurs. So a price hike is the right step in the era of dwindling supply and rising prices of oil as it curtails consumption of oil - cutting waste and adoption of more efficient technology
The impact is immediate - Indonesia, Malaysia & India raising prices, was the trigger for oil futures to start crumbling on the prospect of reduced demand. Once price of oil is reasonable, the government can reverse the hike.
These commys are no gooders. They are exactly doing what the politbearu in Russia was doing. It is a question of time when their bluff will be called off. The commy Mallus and Bangos are so dumb living a idiot's dream. See how the other states have progressed in terms of job and prosperity. I pity the intelligent Mallus and Bangos.
Only Soniaji is calable of removing India from this mess of corruption, inflatation, poverty etc. She is perhaps the true iron lady after Indiraji & Margaret Thatcher. Her selfless act of opting out of prime ministership is testimony to her nature. Really the only shining light along with Rahul Gandhi in todays dirty political world. Hope she choses to lead India from the coming elections as PM.
RE:Soniaji
by Mona Shah on Jun 05, 2008 11:24 AM Permalink
I absolutely adore Soniaji. The way she maintains her dignity even in face of worst of problems (assasination of her mother in law, husband, opposition to her becoming the PM of india, her character assasination by her detractors etc). We do need more leaders like her if we r to save our country from going to the dumps. Her becoming the PM of india will probably be Gods gift to India. One can also see that Rahulji is being groomed to become the future PM of india.
Soniaji will prove to be the best PM of india after Pt. Nehru.
RE:Soniaji
by rocky marciano on Jun 05, 2008 11:59 AM Permalink
who said nehru was the best PM. He and his five year plans are just a joke. If he really had vision, India would have been a developed country by now.
Rediff and other newschannels should analyse and tell us the cost to the exchequer due to these 'bandhs'?How many bandhs happen a month in Kolkata? Is it any wonder that these "left' states are 'left' in the fringes of development? W.Bengal, the industrial leader of the 1950's is a toothless tiger today.Compared to the other Southern States, Kerala is far behind in terms of growth and investment..But still these buffoons have the cheek to come on National TV and preach. and We, the people..have no choice.
then Mr. Karat pls shut up and stop organising bundhs,hartals and making people's lives miserable--you and your ilk are the biggest hypocrites in the history of india
Political parties, funnily many times the ruling parties themselves, trade unions, caste associations etc. indulge indiscriminately and with impunity in calling for bandhs, rasta rokos, rail rokos, strikes etc. in India.
Strikes and bandhs could have been valid form of protest when foreigners were ruling India. When the government is in the hand of representatives elected by our own people, there cannot be any justification whatsoever for such protests.
We Indians are most lethargic, lazy, selfish and lack enterprise. This is the prime reason for our backwardness in education, employment, income and wealth.
Courts have ruled clearly earlier that bandhs should be banned.
Everyone, including the vociferous political opponents of the price rise of petroleum products know that when crude price has pierced the sky and has gone up to US $135 or more per barrel (almost 70-80% rise in less than 12 months) it is impossible to avoid price rise for consumers.
They may sound intelligent and logical when they seek to reduce customs, VAT etc. to offset price increase. But then where does the government get funds to execute projects and welfare schemes?
State Govts and political parties have come to a stage where they have to ensure that all populist schemes (like free TV) are scrapped, profligacy is avoided, funds are utilized properly, corruption is rooted out mercilessly.
Bandhs can only cause inconvenience to the public, nothing else.
Dear Mr. Karat, We do not understand the logic behind your saying that we will not withdraw support but we will make strong agitations against the govt". If you dare, withdraw the support and face the people. We are sure that you will not dare to do so because you the consequences - your party will loose atleast half of your existing seats. Shame on your Mr. Karat and other CPM, CPI and left party leaders.
RE:Karat and the Left parties
by Indian on Jun 05, 2008 11:05 AM Permalink
why are u showing decency by prefixing Mr. in front of these politician name....
RE:Karat and the Left parties
by vox populi on Jun 05, 2008 11:06 AM Permalink
the standard excuse being "we dont want communal forces to come to power" communal or not who are they to defy the majority public of india?
sonia is in win-win situation all the time!! if government==live then puppet=PM else if government == fall then puppet=President Pratibha else Karat = shut your mouth and go china
