Finance News

UPA under fresh attack from Left over inflation

The Manmohan Singh government on Friday came under fresh attack from the opposition BJP and Left parties over its failure to bring down rising prices, as inflation touched a 44-month high at 7.83.

The Left, in particular, not only put the government on notice over rising prices but also warned the UPA of "serious consequences" if their objections on the nuclear deal were ignored. In an article in the party's mouthpiece, CPIM general secretary Prakash Karat cautioned that the party would not take kindly to its concerns on the deal being sidelined. The next meeting of the UPA-Left on the nuclear issue is to take place on May 28. On the other hand, party leaders also virtually handed out an ultimatum on the price front, contending that government would have to show take effective measures in two weeks time before the CPIM central committee meeting on May 29 and 30. "The government has two more weeks before our central committee meeting. Sufficient measures must be taken to curb the price rise," a senior leader told FE.

"Unless they (government) take measures suggested by the CPI(M) and the Left parties and implement them seriously, they cannot control price rise," CPI(M) politburo member Sitaram Yechury told PTI here. Maintaining that his party had warned the government of making "a wrong diagnosis" of the price problem, he said it was leading to the slowing down of the economy.

CPI general secretary AB Bardhan however, contended that a meeting of the Left parties scheduled on May 23 to take a collective view on the nuclear issue will also review the current l situation and the "failure" of the government to curb rising prices. The Left had already given the government five-point directives to address the issue that includes banning futures trading in essential items and action against hoarders.

Linking the victory of Maoists in Nepal to the "struggles against imperialism" in South Asia, Karat said, "These reverses for US diplomacy in Nepal come at a time when in India the opposition to the strategic alliance with the US has made progress with the success registered so far in blocking the Indo-US nuclear deal."