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Fuel price hike a conspiracy, says Isaac

Special Correspondent

T.M. Thomas Isaac finds some prescriptions in the Economic Survey disturbing.

THIRUVANANTHAPURAM: The Central government decision to hike the prices of petrol and diesel smacked of an international conspiracy, Finance Minister T.M. Thomas Isaac has said.

Replying to a submission of Raju Abraham (CPI-M) in the Assembly on Thursday regarding the problems thrown up by the oil price hike, Dr. Isaac said the International Energy Agency in its oil market report in June had said that the first step on deregulation of oil price in India would be taken after the Lok Sabha elections. The decision to increase the prices was in tune with the report.

He said that while the UPA government gave tax concessions worth Rs.59,000 crore to the corporate companies, it had decided to collect the revised prices from the public. The tax-payer was being taken to task. He urged the Opposition UDF to protest against the fuel price hike in public interest.

Economic Survey

Addressing a press meet here, the Minister reacted strongly to the contents of the Union Economic Survey tabled in Parliament as it hints at curbs on the States’ freedom to mobilise funds from the market.

“The implication of this move is that the States would lose their freedom to take loans and manage their financial affairs through various mechanisms,” he said.

The 7 per cent growth rate projected by the Economic Survey was unrealistic and unfounded, the Minister said. The agriculture sector had grown at a mere 3.6 per cent last year. During the current year, the sector was unlikely to do better because of the poor monsoon. That would affect the domestic market. Poor agriculture growth would have a serious impact on the economy, the Minister said.

He also found certain other prescriptions in the Economic Survey disturbing. The proposals to further disinvestment in public sector enterprises and allow futures trading in all sectors would only strengthen monopoly houses.

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