HYDERABAD: Polit Bureau member of Telugu Desam Party (TDP), Yanamala Ramakrishnudu on Tuesday observed that recent statements and directions of the Planning Commission and proposals of Eleventh Five Year Plan were indicative of letting down agriculture sector and the poor by cutting subsidies. It was a bad news for the poor and majority people in the country indeed, he said.
The former Finance Minister also found fault with the ruling party leaders including Ministers for criticising the CAG report. It was a constitutional body and its reports would be binding on any government. The government should give explanation to people on the remarks of CAG, he suggested.
Addressing a press conference here, he mentioned that subsidies during 2009-10 amounted to Rs. 1.9 lakh crore, while the same was proposed to be reduced by about 50 per cent as per the budget estimates.
The constant increase in oil prices would also have a cascading effect on other prices, but the government appeared to have no plans to control and bring down the prices, he felt.
He attributed the abnormal increase in the food prices during the last one year to slashing of about Rs. 55,000 crore subsidy on fertilisers. The resultant increase in input costs and lack of government control on hoarding and black marketing had led to heavy price rise, Mr. Ramakrishnudu alleged.
As per a government report the percentage of poverty was 27.5 in the country, but Vijay Tendulkar Committee appointed by it had put it at 37.2 per cent. In spite of huge population still being below poverty line, the government decision to cut the subsidies was unfathomable, he noted. He mentioned that the Planning Commission had recognised that poverty in the State had come down when TDP had implemented welfare schemes like subsidised rice and housing.
However, the present panel led by economist M.S. Ahluwalia had suggested the State government either to reform or scrap most of the welfare schemes as they had failed to have a positive impact on poverty.
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