The Central government has failed to control spiralling inflation, Member of Parliament V. Vijaya Sai Reddy said in the Rajya Sabha on Tuesday, flagging concerns over the country’s rising fiscal deficit.
Speaking during a short-term discussion on inflation in the Rajya Sabha, Mr. Vijaya Sai Reddy said that both the Centre and Reserve Bank of India had failed to control the prices of essential commodities. It is to be noted that the RBI had indicated that fiscal deficit would be over 6 per cent in the coming financial year.
“It is not correct to base the fiscal deficit on the basis of wholesale price index. It should be based on consumption index. The steep hike in essential prices has affected the common man and it is up to the Centre to provide social and economic security for the people,” Mr. Vijaya Sai Reddy said.
“Andhra Pradesh lost ₹46,000 crore as the Centre failed to remit the State’s quota in the Central Gross Tax Revenue and so far, the State had lost ₹11.26 crore due to the regressive tax regime of the Centre,” he said.
The MP also raised concerns over the job security of daily wagers whose lives have been affected due to COVID-19 and said that the Centre could provide them job security and raise their standards of living. The labour force percentage had fallen to 39.5 per cent from 47.3 per cent in March this year, he said.
The MP also demanded that the Centre hike the interest rates on small savings schemes and also demanded that the Centre exempt Tirumala Tirupati Devasthanams (TTD) from the ambit of GST.
Replying to the MP’s questions, Minister of State for Finance Bhagavat Karad said that the banks had to follow RBI’s guidelines while sanctioning loans. He also said that the Centre had taken cognizance of AP State Development Corporation and other corporations availing loans from the banks.
