The BJP is concentrating on the issue of reducing inflation, especially the price rise of Fuels and essential commodities. The party knows pretty well that the price rise might affect the election results.
It may be recalled that Sheila Dixit lost power in Delhi because of the rise in the rates of Onions. Now the common man is burdened with the price rise in vegetables also.
The tomato was costing around Rs 3OO pe Kg in some states. Now it is under a hundred. Now there is every need to reduce the rates of petrol and diesel apart from cooking oils.
Urgency is building for bureaucrats after Modi in a speech to the nation this week vowed to fight inflation that has surged to a 15-month high. India is a country where the cost of onions and tomatoes has toppled governments.
The BJP Government has just months to rein in prices for voters, he also cannot afford to blow out the budget deficit that is being closely watched by global investors.
Budgetary re-allocations aren’t unusual in India, but higher dividend payments from the central bank and steady tax collections as the economy grows at one of the fastest paces in the world allow for legroom of about a trillion rupees, equivalent to 2% of the budget for the year through March 2024, the people said.
The fiscal space could also be used to provide cheaper loans and homes for the poor, while sticking to the budget deficit target of 5.9% of the gross domestic product for the year that started April 1, they said.
A Finance Ministry spokesperson didn’t respond to requests seeking comments.
