Is government of if India really interested in containing the price rise or inflation?

Is government of if India really interested in containing the price rise or inflation.?

• In India, the govt. is busy in searching more and more words for fresh taxes and then on as many persons and goods and services. taxes,cess, surcharge, sales tax, VAT, Income Tax. Corprate Tax, Excise, Custom Duty, Increasing prices of the goods provided by the Govt. viz. Diesel, and last but not the least opening up of the commodity exchange and allowing the private players to hoard the edibles and sell them to the public at their best advantageous time are some of the examples. After all every one who pays such taxes in turn recieves back from the public. And so the prices are increased. The govt. is not looking at these facts, but by resticting the liquidity and increasing the rate of interest it in fact is trying to increase the prices further. This is nothing but the hypocracy of the govt. of India.

• Answer:

  Very few people actually pay taxes in India. Large price rises of staple goods would be a social disaster in India, as such a large part of the population lives on a fixed income below the poverty line. 'Fixing' the Commodities Market to create false demand, both inside or outside the country, needs careful monitoring by the Commodities Commission. That is not to say that a such a market, properly and transparently run, could not also be a great asset to overall price stability.