Economic Exploitation and Inflation

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Bhubaneswar: The Repo Rate has been increased to 40 bps by the Monetary Policy Committee (MPC) of the Reserve Bank. So it has reached 4.4 per cent. Notably, Repo Rate is the rate at which loans are granted to the commercial banks of the RBI in case of a shortage of funds. It is also said that it controls inflation. Statistics say, in last March, the retail inflation was 6.95 per cent. The increase in food prices has resulted in this situation. There will be an increase in personal and domestic loans after the hike in the Repo Rate. In this situation, on 7 May 2022, the Oil Marketing Companies(OMC) increased the price of the cooking gas by Rs. 50 per cylinder. As a result of this, a 14.2 kg gas cylinder costs more than Rs 1,026 in Bhubaneswar and it costs Rs 1, 050 in Malkangiri. After 2021, the cost of the cooking gas cylinder has increased by 190 within a year. Certainly, it has put an extra financial burden on each family.

In a good country, the primary aim of the government is to achieve the welfare of the people. But the attitude of the policymakers indicates that every step is being taken in favour of the Oil Marketing Companies. It can be said that when the ruling party is not heading for an upcoming election, inflation hits. During that particular time, the attention of the people is being averted toward a petty matter to conceal the main issue in the country. If there is no election ahead then the price of petrol, diesel and LPG will remain constant. When the price of these goods rises, the government responds by saying in the automated system the price goes up and down.

It is understood how much the economy in India has diminished from the example of the exchange rate of the Indian currency having reached Rs 77. The international situation has been blamed for this. But from 2014 to now, if estimated, can be understood that many economic decisions are taken with evil intentions to win the elections. Then various false propaganda is being spread through advertisements and social media by spending loads of money. It is said that whatever inconvenience and inflation are happening is the contribution of the common people to make the nation. So political benefits are gained by using the economy. By this, the country will soon face the same situation as the Srilanka, predicated by the economists.

The price hike in goods can be controlled so that the common mass will not face the financial burden. For that, the petroleum products and goods service taxes (GST) can be included. But the current government is not ready to accept it. Everyone is getting exploited by the same formula.