Former union finance minister and senior Bharatiya Janata Party (BJP) leader Yashwant Sinha Saturday said budget 2011-12 will have an inflationary effect instead of controlling prices.
“There are some proposals in the budget which are inflationary. Rise in prices of cement, coal and steel will have a cascading effect. This budget will actually have an inflationary impact instead of controlling price rise,” Sinha told reporters on the sidelines of a session on “Union Budget 2011″, organised here by the Bharat Chamber of Commerce.
“Subsidy figures in this budget show that the government is planning to raise petrol and diesel prices. It will also have an inflationary effect,” he said.
“The common man has to face the price rise. Grocery bill is rising… the common man will suffer,” he stated.
“Food price is an issue of supply side. If the government does not take steps to contain inflation then the traders will hoard food grains more and more, leading to more inflation,” he said.
On the black money issue, the BJP leader said he was expecting strong measures from union Finance Minister Pranab Mukherjee to tackle the menace but in the budget he did not mention any tough steps.