Will Government make provision to control Inflation in Budget 2013?

inflation

I have always heard from my grandfather about how things were when he was at my age. A movie ticket was for a few paisa at that time. Now it is worth Rs.200. Salary at that time was Rs.400 and still he could able to save. Today salary level has gone up to Rs.50, 000 but still people are unable to save enough money. This is what we called inflation is, the price of everything goes up. Because the price goes up, the salaries go up.

Inflation is killer it make life more miserable. Inflation eats into your money, this is the reason you keep on hearing that do not keep your money stagnant always invest your money. As by investment you can grow your money or in turn you can fight with enemy called as inflation.

Along with addressing requirement on taxation big question arise in my mind is will Government make provision to control Inflation in Budget 2013?

Let’s look at some figures which will give you clear picture why I am of the opinion government should control inflation by making provision in budget.

(1)   Every now and then we get news for rise in price of petrol, diesel & gas. If we consider previous year, price of petrol & gas was revised two to three times causing petrol price nearly 70 Rs/- Liter.  Same Petrol was costing 23 Rs/- in 1998.

Government may give argument that petrol price has increased due to price change in international market how it can be controlled? But my argument to that is why state government has imposed heavy VAT on petrol which is ranging from 1% to 35%. Hope some provision on GST will be made which will reduce price of petrol.

This price rise of petrol gives cascading effect in inflation. I will explain you by examples.

  • Edible oil Tin price was around 1400 Rs/- in 2011-12 but now it has reached to almost 2200 Rs/- difference is only 800 Rs/- but for common man it may be unbearable.
  • Price of Milk was increased so many times in 2011-12 and reach to around 22 Rs/- per 500 ml. For so many of us this has caused major impact in household budget.

This price rise could be due to rise in petrol price.

 (2) Many Education institute still ask for donation, Still fees of education are increasing like anything which is going beyond reach of common man. Government has imposed education cess but who knows that government is using that money for spreading education or not ?

(3)  Medical expense has gone up like anything hope government will make some provision to reduce this cost or provide social security which will cover medical expense.

(4) Real estate price is going up and up every year, we see 10-25 % rise in price, reason was given that this rise is because of rise in raw material price but does government really take steps to control this price, so that common man can purchase his basic need.

I hope I have justified my point that it is necessary to kill inflation. If government will not help in killing inflation, I am sure inflation will defiantly kill government.

Do add your views in comment section.

Article by Shitanshu

Hi, I am Shitanshu. By Profession I am Engineer and working in the IT field. I am crazy about Finance and like to research on financial matters. I have written 80+ article on this blog. If you like my efforts kindly subscribe to this blog and also let your friends know about this website by sharing.

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