In order to come fullon on the expectations of the common man in the budget, Indian finance Minister, Pranab Mukherjee said that the government will have to take steps to increase his purchasing power.
PTI reports Mukherjee quoting, “I will have to say that this is the effort which the government will have to make.”
Mukherjee said some inflationary pressure would be there in a growing economy. “In a growing economy, it is very difficult to say that there will be no inflationary pressures… Some impact would be there,” he said.
At the same time, from the consumer’s point of view, “If I cannot increase his purchasing power, then, he cannot afford to buy products. Therefore, this is the exercise which we shall have to take up.”
In the run-up to the Budget to be presented on February 28, there is an expectation that the Finance Minister could increase the exemption limits of income tax from the existing Rs. 1.6 lakh per annum for men and Rs. 1.9 lakh for women.
Food inflation, which hurts the common man most, is still ruling in the double digits despite some moderation in the recent weeks.
However, Mukherjee, admitted the government cannot control the prices because of other external factors but can reduce its adverse impact on people by strengthening the public distribution system.
He said, it is the responsibility of the policymakers and the government to ensure that the price rise is within a manageable level. Steps are being taken both by removing the supply constraint and by fixing the appropriate monetary policy, he added.
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