Prices to be checked, says FM

New Delhi, Mar 16: Saying that inflation rate for the year 2006-07 will be 5.4 per cent, Finance Minister P Chidambaram today exuded confidence that its burden would reduce in the ''next few weeks and months'' and assured that the government would not be found wanting in bringing down the rising prices of cement.

''The government cannot plead helplessness or remain passive when the price of a commodity like cement rises abnormally and at a very fast rate. Government is still hopeful that cement manufacturers will realise their responsibility and moderate prices,'' Mr Chidambaram said in his reply to the two-day Budget debate in the Lok Sabha.

Mr Chidambaram's entire remarks relating to the Budget came amid continuing loud protests from an adamant Opposition which wanted resignation of the West Bengal government over the Nandigram violence. But the Finance Minister hurriedly went through his speech.

Ruling out roll back on the dual excise duty on cement imposed in the Budget 2006-07, Mr Chidambaram said this was not a new phenomena as there have been instance of dual sales tax rate and dual excise duty sructure on some commodities.

Mr Chidambaram said if the cement manufacturers were facing problems in adding capacity or accessing coal or raw materials, the government will help them in this regard. ''We are keeping a careful watch over the situation and will take appropriate steps to convince the cement manufacturers to act accordingly,'' he said.

During the course of the debate a large number of members had expressed concern over the rising prices and some had even criticised the government for inept handling of the situation.

The Finance Minister dwelt at length on the subject taking recourse to history to convince the House that the government had been able to control prices in the past at various times and would be able to do so even now. In this regard, Mr Chidambaram said the government would use a combination of fiscal, monetary and supply side instruments to bring a check on the prices.

Mr Chidambaram said the current inflation was driven largely by the primary articles group and gave full support to the monetary measures taken by the Central Bank to bring down prices.

''I recognise the burden on the people, but this burden will ease over the next weeks and months,'' Mr Chidambaram said.

Mr Chidambaram repeatedly said the primary targeted beneficiary of his Budget was the 'Aam Admi' and took on the previous NDA government for not doing enough for him. ''The Congress party became the single largest party at the last elections on the plank of 'Aam Admi'. We take this commitment to the 'Aam Admi' seriously,'' he said.

The Finance Minister listed steps announced in the Budget in this regard, such as one lakh jobs for physically challenged and an equal number of students to benefit from the 'Merit-cum-Means scholarship' scheme.

Talking about the 'Aam Admi Bima Yojna' announced in the Budget, Mr Chidambaram said the scheme was the first large attempt by any government to provide social security to the unorganised workers. He said LIC has conveyed to him that by end March 2007, 70 lakh households will be covered through the existing schemes of LIC.

''LIC is working out the details of the scheme(Aam Admi Bima Yojna). It will offer cover for death and disability. I am confident of persudaing State governments to come on board and jointly fund the scheme(along with monies from the social security fund). As we gain experience, we will extend the cover to more categories of workers in the unorganised sector,'' he said.

Regarding the National Rural Employment Guarantee Scheme (NREGS), Mr Chidambaram said implementation of this being the primary responsibility of the State governments, the onus was on them to ensure that all those entitled to work under the scheme were not denied their right. It was also necessary for them that the labour so employed gets its fair share.

''I would urge Honourable Members to monitor the implementation of the Scheme in their respective districts or constituencies and convey their assessment to the Ministry of Rural Development,'' Mr Chidambaram said.

UNI