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Allies force withdrawal of price hike

George Iype in New Delhi

Faced with a real threat from some of its allies to pull out of the Bharatiya Janata Party-led coalition, the government today rolled back the increase in prices of wheat, rice and sugar issued through the public distribution system for people below the poverty line.

The BJP's partners also asked the prime minister to censure the Sangh Parivar and its organisations for the recent attacks on Christian missionaries and churches in many parts of the country.

"Since the BJP is the core of our alliance, it should make every effort to ensure that the prestige and cohesiveness of the coalition are not diluted by organisations belonging to its ideological fraternity," a joint statement adopted by the committee said.

Bowing to his angry allies, Vajpayee agreed to withdraw the increase in prices of food grains during the crucial meeting convened at his Race Course Road residence.

Representatives of the allies, who spoke during the four-hour meeting, lambasted the government for taking what they termed anti-people and anti-poor economic measures by pruning the fiscal deficit and reducing subsidies.

Official sources said the meeting witnessed several angry exchanges. Sensing danger, Vajpayee had no option but to cancel the price increase. The alternative was goodbye to the coalition.

The decision to give up Finance Minister Yashwant Sinha's major pre-Budget exercise of cutting subsidies is seen as a setback for the BJP and a victory for its allies.

The meeting, chaired by Prime Minister Vajpayee, was attended by representatives of the BJP, the All-India Anna Dravida Munnetra Kazhagam, National Conference, Samata Party, Marumalarchi DMK, Pattali Makkal Katchi, Haryana Vikas Party, Lok Shakti, Shiromani Akali Dal, Telugu Desam Party, and Tamilnadu Rajiv Congress.

Prominent among those who attended were the committee's convener and Defence Minister George Fernandes, Finance Minister Sinha, Home Minister Lal Kishenchand Advani, Jammu and Kashmir Chief Minister Farooq Abdullah, Punjab Chief Minister Parkash Singh Badal, and Commerce Minister Ramakrishna Hegde.

Trinamul Congress leader Mamata Banerjee, who had also been threatening to withdraw support to the government on the issue, did not attend the meeting as she has resigned from the co-ordination committee last year. Though AIADMK general secretary J Jayalalitha was also absent, Law Minister M Thambi Durai represented her.

Though the meeting was meant to convince the allies of the reasons for the price hike and seek their views on the forthcoming Union Budget, the alliance partners confronted the government and made clear their ire over the unpopular pre-Budget hikes.

"We told the prime minister that the price hike is being thrust on the people and no responsible alliance partner can support the government's fiscal measures at this juncture," Trinamul Congress leader Sudip Bandopadhyay told Rediff On The NeT.

"We also sought an explanation from the government on the increasing attacks on minorities across the country and especially the violence against Christians in states like Gujarat and Orissa," he said.

In an attempt to seek the allies' support for his fiscal measures, just before the meeting Sinha briefed them about the bad economic position the country is in and the huge fiscal deficit constraints faced by the government.

The finance minister tried to take them into confidence by stating that the government was also compelled to increase the prices of liquefied petroleum gas and urea.

But Punjab Chief Minister Badal, Law Minister Thambi Durai and the TDP representative were at their aggressive best, terming the decision unilateral, arbitrary and anti-people.

"I also advocated that 29 per cent of all central taxes should be given to the states as per the recommendations of the Tenth Finance Commission for devolution of central taxes," Badal later told Rediff On The NeT.

He said most allies "disapproved of the government's decision to cut subsidies". Some suggested that the 1999-2000 Budget should provide for lump-sum grants to states in lieu of centrally sponsored schemes.

The allies also wanted the prime minister to order the home ministry to take charge of the situation as the attacks on Christians in some states, notably the gruesome killing of Australian missionary Graham Stains and his two sons in Orissa, have tarnished the image of the government and the country.

They also cautioned Vajpayee about the need to rein in some of the Sangh Parivar organisations like the Bajrang Dal and the Vishwa Hindu Parishad. They said a feeling of insecurity has set in the minority communities and the public impression is that the government is actively promoting the pro-Hindu outfits.

Some of the allies also expressed their unhappiness at the clean chit given by Advani and BJP president Shashikant 'Kushabhau' Thakre to the Bajrang Dal on the missionary's murder.

Vajpayee, who patiently heard the allies' complaints, explained the constraints of leading a coalition government. He is said to have detailed the actions the government has taken against the attacks on Christian missionaries, both in Gujarat and Orissa.

The Christian attacks row

EARLIER REPORTS:
TDP threatens to withdraw support
Jayalalitha attacks hike in cooking gas price

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