“If you attribute the inflation to the states to the center, we need a way for centre-states cooperation to handle the price rise”
“If you attribute the inflation to the states to the center, we need a way for centre-states cooperation to handle the price rise”
Emphasizing that it is unfair to blame the Center for the high price levels of some states, Finance Minister Nirmala Sitharaman on Thursday said that States that have not cut fuel tax They are registering inflation rates above the national average and have called for a Centre-State cooperation mechanism to handle cases of price rise.
While the Center had recently cut petroleum taxes twice for consumers in the wake of rising global prices, Ms Sitharaman pointed out that many states had not provided any relief to their residents who were suffering from it.
“Recently, information widely available in the public domain has shown how inflation has varied from state to state. There may be many reasons for that. But the fact remains, and incidentally, and I am careful here. Incidentally, inflation is higher than the national level inflation in states that have not reduced fuel prices,” Ms Sitharaman said.
“You might think I am being clear. But it establishes the fact that the movement of food grains and food-related items actually has an impact on the price of these goods, which is a measure of the Consumer Price Index (CPI). Large portion,” Ms Sitharaman said.
whereas Headline inflation has been average Since January 2022, 6.8%, 14 states as well as three Union Territories including Jammu and Kashmir (J&K) have faced higher than national inflation, most of them averaging over 7%, as shown by the states Inflation is as per the analysis of trends. Hindu,
Consumers in Telangana (8.32%), West Bengal (8.06%) and Sikkim were the most affected by inflation above 8%, followed by Maharashtra and Haryana (7.7%), Madhya Pradesh (7.52%), Assam (7.37%). ) Huh. ), Uttar Pradesh (7.27%), Gujarat and Jammu and Kashmir both have an average of 7.2%.
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“Inflation prevailing in different parts of the country varies from state to state despite GST and despite creation of a market and removal of toll tax and free movement of goods,” Ms Sitharaman said, adding that it makes India . The inflation experience is different from that of many other countries.
“Now if the states and their inflation will also be held responsible to the Government of India, then we have to work together to handle the inflation matters with the cooperation of the center and the state,” he stressed on an ICRIER on ‘Taming Inflation’ conference.
Drawing an analogy with the debate on devolution of taxable revenue, where some states argue that they get an unfair share of revenue compared to what they contribute to the economy, Ms Sitharaman said it is important for states to assess how to deal with inflation. A similar approach is needed.
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“It cannot be that inflation is controlled only by the Centre, and when the states do not take adequate steps, that part of India suffers to get rid of the inflationary stress… that is justification enough to understand that That’s how states manage to handle their inflation,” Ms Sitharaman underlined.
Ms Sitharaman began her remarks by saying: “Now, I am not doing politics here, but I will bring an element where you would suspect that I am doing politics. But it’s definite for people who study inflation. has relevance.”
“At a time when global fuel prices have risen, you wanted to ensure that the burden does not fall on the end consumer. Where it was possible, and how much was possible, the government reduced the price of petroleum products twice as much as could be done,” Ms Sitharaman recalled.