Opinion Shore up the state

It suggests steps like the upgrade of Schedule V areas — under which Dantewada falls — to Schedule VI,so that tribal people can enjoy full democratic rights and implementation of the panchayat (extension to scheduled areas) and the forest rights acts. While the lack of political will to combat market forces in trading of forest produce led to the entry of the Maoists,an unaccountable and ineffective state apparatus allowed them to set up parallel governments,the article claims. It adds that while the Union government has declared an integrated development programme for tribal areas in the red corridor,its effectiveness remains to be seen,given the absence of a competent state apparatus that routinely combats exploitative forces.

Oil’s not the answer

In another article,Left economist Prabhat Patnaik takes on Planning Commission deputy chairman Montek Singh Ahluwalia for his reported remarks that the oil price increase was an anti-inflationary measure,that the rise in petro-product prices would “suck liquidity” from the economy,which would help to reduce inflation.

“But since the sellers of petro-products are not ‘outside’ the economy,a rise in their prices only means that more money is transferred from the buyers to sellers than would have happened otherwise; it does not mean money getting ‘sucked out of the economy’.”

“Even if we assume… that the economy excludes the sellers of petro-products,if they spend the money they have supposedly sucked out,then it again goes back into the economy. So the argument is really about spending,” he says.

He argues inflation is a worldwide phenomenon caused by a combination of oil price increase and diversion of foodgrains for energy production in response to it,which has led to acute food shortage and rise in food prices. “The third world is a special victim of it. Controlling inflation in the Indian economy requires not a curbing of aggregate domestic demand,but an insulation from world food price trends,domestic supply management of foodgrain,and a curb on the supply price of food by keeping energy costs low,which entails not passing on the increase in world oil prices,” he says.

Loose purse-strings

Still reeling from its West Bengal defeat,the Left has begun criticising CM Mamata Banerjee’s administrative decisions. An article in CPI’s New Age says her “populist announcements” could push the state towards a bigger financial crisis.

Referring to her plans to give Kolkata a facelift to resemble London,it says the municipal corporation has already declared Kolkata’s commercial hub a hoarding-free zone. The article argues the move would mean a huge revenue loss for the already cash-strapped municipal agency. It also slams the CM’s move to play Tagore’s songs at traffic signals. “The scheme,which is being launched as a pilot project,will need Rs 10 crore,which is nothing but wastage of the taxpayers’ money,” it says.

In an observation that could anger the CPM,the article says the Trinamool-led government has “inherited a massive debt load and is burdened with a huge amount of unpaid bills.”

“Without taking cognisance of the fiscal health of the state,Banerjee also slashed 4 per cent value-added tax on cooking gas,saving Rs 16 per cylinder for the consumers in West Bengal. LPG cooking gas in Bengal will cost Rs 399 instead of the proposed Rs 415 after the waiver. The decision to slash the VAT on LPG cylinders was taken after the recent hike in prices of petroleum products. The state will incur a loss of over Rs 75 crore because of this populist announcement,” it adds.

Compiled by Manoj C.G.