| Negating
the impact of the current inflationary episode in India
on the poor requires both the ensuring of appropriate
supplies through imports, and a transfer of purchasing
power from the profit earners to the workers. Hence,
even if augmentation of supplies through resorting to
imports, as the government is doing now in the case
of foodgrains, succeeds in ending inflation, there is
still the need to put additional purchasing power in
the hands of the poor so that they regain their earlier
real income. The author argues that the basic problem
with the 2007-08 budget is that it is oblivious of these
social demands of a situation of profit inflation. |
