Under the guise of making economy strong, the government today took two major steps. First, subsidised cylinders will now be increased from 6 to 9. Second, by deregularising diesel, the mandate of deciding its price has now been given to the oil companies. As a result, we could see a surge of up to Rs 9 per litre in the prices of diesel.
Government has cited the losses suffered by the oil companies as a reason to have taken this step. If the prices of diesel do rise in future, we may see us-the common people suffer once again. It could be in the form of increased fare of public transport system, rise in prices of essential commodities, which are transported from once place to the other. If the trend continues, inflation may rise like never before.
These are problems that we could face because of certain steps not taken by the government. So what should the government have done to avert this crisis?
1. Curb black-marketing: It has been argued that the subsidy given by the government for Kerosene often goes into black marketing. Had the government tried to control black marketing, oil companies as well as the common face would not have had to bear the brunt.
2. Reduce MPs’, MLAs’ salaries and benefits:
Hefty salaries including perks have put a huge burden on the Indian economy. In the last 5 years, around Rs 2 Cr have been spent on a single MP. If we include all 534 MPs, it comes to around Rs 1068 Cr.
3. Buy directly from Iran: owing to fear from America, India has not been able to import directly from Iran. This year itself, India reduced its oil import from iran by 11%. If India forgets America’s fear and imports directly from Iran, burden of subsidy will be reduced.
4. Control corruption and chaos: India figures quite ahead in the list of corrupt nation. India has been rocked by mammoth scams like 2G scam ang CWG scam. The loss that exchequer faces due to these scams is huge. It is time, the government took steps to stop corruption.