- The budget deficit is climbing and government wants every Rupiya to control the same
- Government does not have the guts to De-regulate diesel prices, which is the right thing to do.
- Congress has gone through tremendous defeats in the just concluded polls in 5 states. They have no choice but to go in for populist measures in the budget keeping an eye on 2014 elections. A lot of people think that the government is subsidizing fuel for the car owners and the government would want to change that perception before the central elections
The decision may end up disrupting the automotive industry which is already under pressure due to high interest rates and rising petrol prices. Ideally the government should de-regulate the diesel prices so that the markets take it's own course.
But now is NO time for correct policy decisions... it is time for populist measures and build up the vote bank? or is it?
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