Kalam: Price rise offshoot of growth

The growing pressures on the UPA from the spurt in inflation was reflected in President A P J Abdul Kalam8217;s address to Parliament on Friday

The growing pressures on the UPA from the spurt in inflation was reflected in President A P J Abdul Kalam8217;s address to Parliament on Friday, as he referred to efforts by the government to tackle inflation with fiscal and monetary measures and its commitment to insulate the poor from it. He acknowledged that the rate of inflation had been showing an upward trend, but also drew attention to how the government had tried to lower the impact of global oil and commodity prices early last year.

The concerns on inflation, which have snowballed into a major political issue having been raised by UPA allies, the Left and the Opposition and lately the Congress, found space at the top of the President8217;s address. He also outlined the government8217;s plans for building a 8220;new infrastructure of inclusive growth8221; comprising the government8217;s social development programmes like the Bharat Nirman, National Rural Employment Guarantee Act, the Sarva Shiksha Abhiyan and the National Urban Renewal Mission.

There was only one interruption during the address when Shiv Sena members rose to protest when the President referred to terrorism. The President explained that inflationary trends were an offshoot of rising growth, investment and incomes that were fuelling demand. And while it could take time to meet the rise in demand with a rise in supply, the 8220;solemn commitment8221; of the government was to see the poor did not suffer.

8220;My government has set a target of attaining an annual growth rate of 9 per cent during the Eleventh Plan. However, economic growth is not an end in itself. It is 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,8221; Kalam said.

The government8217;s intent of social justice involved bringing on board backward minority groups. Referring to the Sachar Committee and the setting up of the Ministry of Minority Welfare, he said it was necessary that such groups were active participants and beneficiaries of growth.

8220;My government proposes to introduce comprehensive scholarship schemes from primary to post graduate levels for eligible students belonging to minorities,8221; he said. He confirmed the government8217;s plans for formulating an exclusive programme for districts and towns with large minority population.

Kalam referred to another controversial issue 8212; the acquisition of agricultural land for industrial development 8212; saying compensation had become an issue of major public concern, and a new rehabilitation policy was on the way which would be backed by suitable amendments to the Land Acquisition Act.