The Congress and Janata Dal (Secular)’s promises of free electricity and rice, subsidized cooking gas, have drawn an angry reaction from the ruling BJP, which claims these freebies will “drain the exchequer.” file | Photo Credit: PTI
in front of karnataka assembly electionBoth the main opposition parties – the Congress and the Janata Dal (Secular) – have made several poll promises to address voters’ concerns about rising prices, at a time when the economic slowdown has affected the livelihood of many.
However, his promises of free electricity and rice, subsidized cooking gas, and benefits to a wide range of groups – from housewives and auto drivers to senior citizens, the disabled and unemployed – have prompted an angry response from the ruling BJP, Joe claims these freebies “will empty the coffers.” Labor unions are also not satisfied with the opposition’s promises, asking parties to empower them with a fair minimum wage that rises in line with prices, rather than issuing bailouts.
price rise calculation
In Karnataka, a price increase of 21.2% has been recorded by the Consumer Price Index (CPI) notified by the state government to calculate wages for industrial workers in the state between 2018 and 2022. It is calculated after capturing the prices of the items. The consumer basket – which includes about 160 to 170 food items, petroleum products, and goods and services – is mainly consumed by industrial workers in 16 centers across the state.
However, those in the know believe that although these industrial pockets have registered a growth of 21.2%, the actual growth in other centers where consumption patterns differ, is much higher, while some price fluctuations are higher than the CPI. are not involved at all. For example, the CPI does not capture the cost of computers or laptops, which are very important for employment for many people, or the cost of large items like refrigerators or two-wheelers.
Gas, fuel rates hiked
The steep rise in prices has been felt among the poor, as free cylinders under the Ujjwala scheme and subsidies for others have been withdrawn, while the price of a non-subsidised LPG cylinder reached Rs 1,105 in Bengaluru, the highest in 2018. That’s a whopping 70% increase since. Similarly, the price of diesel and petrol has increased by 33% and 37% respectively in the last five years.
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Agriculture and dairy farming inputs, which are very important for an agrarian economy like Karnataka’s, have also seen prices rise by over 25%, reducing the disposable personal income of farmers, who have also been hit by the vagaries of nature .
Viewed through the prism of unemployment, under-employment and stagnant wages due to the COVID-19 lockdown and consequent economic downturn, the impact of rising prices is acute, putting a strain on household budgets.
some relief to laborers
Interestingly, despite the increase in prices, the minimum wage revision exercise initiated by the state government has not brought any respite.
The minimum wages for 22 types of workers out of a total of 83 scheduled types of employment in the state have been increased by an average of 10%. About 1.77 crore workers – or about 20% of the state’s population – are eligible for minimum wages. Despite adding a marginally higher annual variable dearness allowance, the increase in total fixed wages did not match the 21.2% increase in prices captured by the CPI.
Given the situation, labor unions argue that instead of announcing bailouts, political parties should actually empower workers with a reasonable minimum wage that is commensurate with price rise. However, he says that in 2018, the issue of minimum wages was not even in the election manifestos of mainstream political parties; They are now watching whether any party fulfills their demands in time for the 2023 elections.