Why is the petrol not getting cheaper is an oft-repeated question and Krishi Cess seems to be the new topic of discussion amongst the salaried class. Let us try and understand them but first look at the bigger picture.
The current debt on India (which means, on us, the citizens) is about Rs. 5,32,000 CRORE in the form of Fiscal deficit (3.9% of GDP) and another 3,75,000 CRORE in the form of revenue deficit (2.5% of GDP) . The accumulated debt on us from Iran was about Rs. 48,000 crore of which the first instalment of about Rs. 5,000 crore has been paid a few days back. Government is soon planning to pay the remaining Rs.43,000 crore.
To add to this massive debt, we need to grow and develop our infrastructure simultaneously – about Rs. 1,70,000 crore investment in railways, Rs. 50,000 crore in highways & roadways and similarly “multi-thousand crores” on rural and urban development, agriculture, social welfare schemes to name a few.
People ask why we are not getting the direct benefit of low oil price in the form of cheaper petrol/diesel.
I agree, you are not getting Petrol at Rs. 45/litre, but the money is being used to pay the debts (containing fiscal deficit). A debt on country is not a debt on Manmohan or Modi or Nitish… It is a debt on every citizen of India… It is a debt on us… When the fiscal deficit is contained, when the debts of Iran are written off, a debt from each of ours head is being paid off…. And had the debts been accumulating by populist measures of lowering Petrol prices, we would have had to pay it sooner or later and would have strained it even more….. May be on our future generations (Remember Venezuela’s current economic crisis??)
Now, in this state of debt, when government wants to improve the standards of farming and help agriculture sector grow by modernisation of agriculture, government puts a 0.5 % Krishi Cess tax on middle class, which will raise Rs. 6000 crore per year.
If 2 crore of my friends can give up subsidies of LPG (almost Rs. 400 per month, assuming 1 cylinder per month) to make the lives of 5 crore poor better, shall we complain for 0.5% extra Krishi cess (hardly about Rs. 100 per month) to help our farmers who are committing suicide on daily basis? Is our support to farmers only limited till online posts and shares??
If government doesn’t tax us and funds these programs from loans, that will push us further in debts. The government can definitely tax the poor. Yes, it is true that middle class has to make a sacrifice, but shouldn’t our ideals be people who gave up eating food once a day on Shastriji’s call in the 1960s or the people who gave up subsidies on LPG voluntarily ??
A country cannot only be run by the government. Development and progress, just like cleanliness, has to be a mass movement where every capable citizen has to contribute in his/her way.
Previous governments have been neck deep in so much corruption that we have lost our trust in paying taxes. It is justified. But with the new government, at least the intent is good. There has been no corruption. Debts are being repaid. People who gave up subsidy on LPG, their subsidy has gone to people who deserved, and not to any politicians pocket…. And I am sure, every penny from this Krishi cess will reach our farmers… Let us, as capable citizens, let go of our greed of saving Rs. 100-150 rupees extra per month and help our farmers who genuinely need our help not only for their survival, but also to feed us and our future… Any
PS – I equally appreciate steps taken by previous governments to contain fiscal deficit…. and I have personally never questioned high Petrol price during 2012-13 as well since I know Petrol Prices are dictated by international oil prices. Think it as an Indian, what we can do for our fellow farmers
By:
Kshitij Mohan,
PhD student,
International Max Planck Research School,
Interfaculty Institute of Cell Biology (University of Tübingen , Germany)
Master of Science (Biological Sciences),
Indian Institute of Science Education and Research, Mohali, India