In all 3 resolutions, Congress targets economic policies of Modi govt

In the CWC meeting, the Congress Party decided to capitalize on the resentment among the middle and low-income class families against the Modi government due to high petrol, diesel and LPG prices. The party blamed the economic policies of the Modi government for the situation, writes ETV Bharat's Deputy News Editor Krishnanand Tripathi.

New Delhi: In the first-ever physical meeting of the Congress Working Committee during the Covid-19 global pandemic, the Congress Party targeted the economic policies of Prime Minister Narendra Modi’s government in all three resolutions passed by the CWC on Saturday. Congress President Sonia Gandhi set the tone for these resolutions in her opening remarks when she attacked the government for a record hike in petrol and diesel prices, privatization of PSUs, and farmers’ agitation, among other issues.

“The country’s financial situation is in terrible shape. The Modi government has no compunction in running the government on revenues raised through crushing taxes imposed on petrol and diesel,” the Congress Working Committee said in its resolution on the country’s political situation.

Record-high prices of petrol and diesel, as petrol price is hovering above Rs 100 a litre and diesel prices have also crossed Rs 100 a litre in several places, provide an easy opportunity to the grand old party to target the Modi government which has been grappling with the gross market borrowing of over Rs 12 lakh crore in the current fiscal and is unwilling to let go any opportunity to shore up its revenues even at the cost of a political backlash.

In addition to attacking the BJP led government at the Centre for the political situation in the country, the CWC passed two other resolutions, one on the price rise in the country and another one the farmer’s movement against the three farm laws passed by the Modi Government last year.

“Prices of essential commodities - food and fuel included - continue to rise unabated. Could anyone in the country ever imagine that petrol prices would be over 100 rupees a litre, diesel would be nearing the 100 rupees a litre mark, a gas cylinder would cost 900 rupees and cooking oil would be 200 rupees a litre. This is making life unbearable for people across the country,” Sonia Gandhi said in her opening remarks.

Gandhi, who has been leading the party after her son Rahul Gandhi stepped down as party president following the Congress party’s second straight defeat in 2019 Lok Sabha elections, was unsparing in her attacks on the economic policies of the government.

Congress targets BJP Govt on disinvestment

Sonia Gandhi also criticized the Modi government for monetization of public assets. She said the economy continues to be a cause of great concern in spite of the government propaganda to make the people believe that it was not. “As we all know, the only answer the Government seems to have for economic recovery is selling off national assets built with great effort over the decades,” she said.

As part of its Atma-Nirbhar Bharat Abhiyan (a self-reliant India campaign), Prime Minister Modi’s government has decided to reduce the government’s presence in running the industry to the bare minimum in four strategic sectors. The government has also set the target of raising Rs 1.75 lakh crore from strategic disinvestment of PSUs in the current financial year and it recently approved the sale of loss-making national carrier Air India to Tata Group.

In addition to Air India, the government will sell its share in two public sector banks and one public sector insurance company through a strategic disinvestment route which means the government would shed the ownership of these companies. Underscoring the importance of PSUs, Sonia Gandhi said, the public sector was not important only because of its strategic and economic objectives but it has had social goals which included the empowerment of SCs and STs and the development of backward areas.

“But all this is in jeopardy with the Modi government’s single-point agenda of Becho, Becho, Becho,” said the Congress President.

Inflation

The Congress party also targeted the Modi government for high food and fuel prices that hurt the common man the most. “Backbreaking Inflation has brought the lives of common citizens to a standstill. The festive season is here but the Modi Government is bent upon robbing the people of India by all round inflation. The Government is completely oblivious to the economic worries and challenges being faced by the average Indian,” the CWC said in its resolution on inflation.

“Since November 2020 alone, cylinder prices have been increased 11 times and the price has gone up by a staggering 51.5% (Rs 594 to Rs 900). To make matters worse for households, the Government has virtually abolished the entire subsidy on cooking gas, which was a vital economic bridge for millions of poor and middle-class Indian families,” said the party.

“The Modi Government’s actions in raising Petrol and Diesel prices is plain and simple extortion. This is making life unbearable for people across the country,” said the party. According to the latest official data released this week, wholesale inflation was 10.66% in September this year on a year-on-year basis that is the sixth straight month when the WPI was in double digits.

The data showed the prices of edible oils in the wholesale market were up by 37% in September this year against their prices in the same month last year. It prompted the government to cut the import duty on edible oils this week. Later, the Centre also asked 8 states to ensure a reduction in edible oil prices in their area in line with the reduction in import duty.

Another area of concern was fuel and power index in the WPI which was up by nearly 25% in September on y-o-y basis. The data showed the price of LPG was up by more than 54%, the price of petrol was up by 55% and price of diesel was up by 52% in comparison with their prices in September 2020.

Farmer’s Agitation

The CWC also passed a specific resolution on the farmer’s agitation. Farmers in Punjab and Haryana, two agrarian states that account for bulk of India’s wheat production, have been protesting the enactment of three-farm laws by the Modi government in the Monsoon session last year.

In its resolution titled: Acute Agrarian Distress & Diabolical Attack on India’s Farmers, the Congress party said the last seven years of the Modi government witnessed an ‘attack on the livelihood of India’s farmers and landless farm labourers’. The resolution said agriculture was subjected to unjustifiable levels of taxation by imposing GST on fertilizer (5%), pesticides (18%) and tractors and agricultural equipment (12%-18%).

The party said the problem was compounded as diesel prices, a key input in the farming sector, touched unprecedented level of Rs 100 a litre in several cities. “All of these retrograde and outright anti-farmer measures, including excessive taxation by the Modi Government, have placed an additional burden of Rs 20,000-25,000 per hectare on agriculture,” the party added.

Reiterating its support to farmer’s agitation, the party said it was committed to the repeal of the three ‘black laws’ and ensuring a just and fair minimum support price mechanism for India’s farmers and justice for landless farm labourers.

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