Govt vows to tackle inflation, terror

NEW DELHI: With the Budget session of Parliament getting under way against the backdrop of rising prices and the Samjhauta Express terror strike, President APJ Abdul Kalam on Friday sought to assure the nation that the government was mindful of the two trouble-spots and was taking measures to contain them.

Addressing the joint session of Parliament here on Friday morning, Mr Kalam, in his hour-long speech, dwelt on the two issues of inflation and cross-border terrorism at length. While patting the government on its back for taking the country on a higher economic growth trajectory, he spoke of the need for an “inclusive and equitable growth’’. He also listed the ruling coalition’s report-card on the foreign policy front.

The customary beginning-of-the-Budget-session address, which contains an outline of the government’s achievements during the year gone by and the developmental roadmap for the coming year, in fact started with references to the attack on the Samjhauta Express and the upward climb of the price-curve, reflecting the Manmohan Singh government’s mounting concerns of the two issues and their impact on popular reflexes.

“I would like to begin by expressing my sincere condolences for the innocent victims of the dastardly and cynical terrorist attack on the Samjhauta Express,’’ the President said, adding, “We should not allow this tragic event to affect our common quest for normalisation of relations between India and Pakistan.’’

The jubilation on the government’s record on the economic front was tempered by the concerns about the rising costs and its damage-potential. “We meet here today at a time of great optimism about our economic performance and prospects. The last three years have recorded an average annual growth rate in national income of over 8%.

By all estimates, we will grow by close to 9% in the current year. This augurs well for the launch of the Eleventh Five Year Plan. My government has set a target of attaining an annual growth rate of 9% during the Eleventh Plan. Given current trends and the general policy direction, this is a feasible proposition,’’ the President noted.

“However,’’ he added, “economic growth is not an end in itself. It’s a means by which we hope to generate more employment, distribute incomes more equitably across social groups and regions, and liberate the poorest of the poor from the scourge of poverty, ignorance and disease.’’

With the rising price graph playing on the government’s mind, the address adumbrated steps being taken to tackle the problem — steps which, he argued, will take some time before they start bearing fruits. “My government recognises that keeping a check on inflation is an essential element of any strategy for economic growth.

During the first half of 2006, my government took a number of steps to insulate our people from the fallout of the steep increase in global oil prices and a resurgence in global commodity prices. However, in recent months, the rate of inflation has shown an upward trend,’’ Mr Kalam observed.

The President sought to explain the phenomenon away as being inevitable, as a spin-off of a higher growth rate and investment. In his address, he made a desperate attempt to refurbish the UPA government’s credentials as the champion of farmers’ cause. The problem faced by the government on the SEZ issue, too, was sought to be addressed. The sum of all the efforts, the President claimed, was to facilitate an all-encompassing growth.

The President also spoke about the measures taken to augment the supply of wheat and to strengthen the PDS. ``Wheat production has been low, but wheat stocks have been replenished in order to control the rise in prices. At the same time, the MSP of wheat and coarse cereals have been suitably enhanced as an incentive for higher production.’’

``Acquisition of agricultural land for industrial development and related purposes and the terms of compensation have become issues of major public concern. On the one hand, there are genuine concerns of the farmers regarding acquisition of agricultural land and, on the other, there is need to use land to generate employment through industry and allied activities,’’ Mr Kalam argued, adding, ``My government is committed to bringing in a new rehabilitation policy which will be backed by amendments in the Land Acquisition Act wherever possible.’’

``My government is building a new architecture of inclusive growth,’’ he said, ``It consists of Bharat Nirman, NREGA, the National Rural Health Mission, the strengthened an expanded Sarva Shiksha Abhiyan, the universalisation of the mid-day meal and ICDS programmes and the Jawahar Lal Nehru Urban Renewal Mission.’’