Essay price hike india

The year came up with relief in the excise duty charged on petrol as it is now charged at Rs.

Article / Essay Price Hike

GST is a simplified tax regime which was imposed by the country after the st amendment. This is a single tax which subsumed all the other taxes such as the services tax, excise duties, etc.

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But, at the time when the GST Act was codified, petrol along with other few items was kept out of the purview this act. Today, many economists and other scholar are in favour of imposing GST on petrol. The retail price of petrol will encounter a downfall after petrol is added under the ambit of GST. Petrol is an inseparable part of all the activities. It is used by many major sectors including the auto, transportation, FMCC, etc, for both manufacturing and transportation.

The machinery uses petrol for manufacturing, these manufactured products needs to be transported to reach the final consumer. A hike in prices of petrol will affect the price of manufacturing and transportation as well, inflicting burden on the consumers.

Essay on Agricultural Price Policy in India

Rate of inflation will increase and the banking sector will be affected by this. Transport is an immense part of today. The distance between residence and work place are increasing. Both poor and the rich needs to travel a great distance and increase in the price of petrol will increase their spending on transportation.

Roadways, railways and the airways will increase their charges when the price of petrol goes up.

Essay on Petrol Price Hike & its Effect on our day to day life

Salary of the middle class families remain fixed but their expenses on travelling increases. This makes it difficult for them to maintain themselves in limited resources. Such an increase will not affect the rich and the corrupt but the poor and the middle class will suffer. Food is a basic amenity for living. With a rise in the price of petrol, the price of food also reaches the sky.

The poor are left helpless as they are left in a bottomless swam of expenses from where there is no rescue.

Price Hike

The living standards which a person want to achieve could never be achieved as he has to pay all the increasing expenses with his limited income. The poor are in pathetic condition. They work to fill their belly and nothing more. The government of India is responsible for the inflationary situation in the country through its policy of deficit financing and the state government contributed their share through their persistent financial indiscipline, high expenditures and unauthorized over-drafts.

There is a large accumulation of unaccounted money in the hand s of income-tax evaders, smugglers, builders and corrupt politicians and government servants. A large part of this money is used in buying and selling of real estate in urban areas, extensive hoarding and black marketing in many essential and inflation sensitive goods such as sugar, edible oils, etc. Increase in population leads to gap between demand and supply of all consumer goods and services which leads to increase in prices.

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It mainly consist of rise in wages, profit margin and rise in other costs. The government and the public sector were also responsible to large extent for pushing up the price level in the country. The government imposed commodity taxes and gave an opportunity to the trading classes to raise the prices. It means the fluctuations in the food grains output. In , food grains production touched a high level of In again food grains touched production level of million tons but fell to million tons in In , food grains touched the peak level in million tons but in It sharply declined to Power breakdown, strikes and lock outs and shortage of transport facilities are major factors for lower rate of production of manufactured goods.

With rising demand the producers are in a position to push up the prices of their products. The price policy since has relied on monetary and fiscal measures with a view to check the demand of the public for goods and services. The government has taken decision to control on its own expenses and keeping in check both its revenue deficit and fiscal deficit. It has been a major instrument of inflation control. The monetary policy of the RBI consist of extensive use of general and selective credit-control measures.

The main aim was to restrict bank-credit against inflation-sensitive goods and to influence the cost and availability of commercial bank credit. Supply management is concerned with the volume of supply and its distribution system.

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The government has focused its attention in securing greater control over the prices of rice, wheat, sugar ,oil and other commodities of mass consumption. The government tries to put control on the undue increase in the price of essential commodities. Eliminating the incentive for hoarding and speculative activity in foodgrains the state government were asked to fix the retail and wholesale price of foodgrains. Prices of goods like cloth, sugar, vanaspati etc were also controlled.

The government has adopted a system of dual prices in the case of goods like sugar, cement, paper, etc. Under this system, the weaker sections of the community are supplied these goods through fair price shops, at controlled prices and rest are allowed to purchase their requirements at higher prices in the open market.

The government used to increase supplies of foodgrains and other essential goods in times of internal shortage through larger imports. Price hike has got a lot of vicious effect on the consumers. At sure situation, the rich do not suffer much, but, the consumers who live on daily wage are adversely affected.

It thus increases the gap between the rich and the poor. Government of the country can play a vital role in curbing the price hike. Please tell us by commenting. The Life Essay is an useful for those students who are currently studying in school or colleges. Students which is currently […]. The My Dream Essay is an useful for those students who are currently studying in school or colleges. The Role of Youths in Nation Building Essay is an useful for those students who are currently studying in school or colleges With the help of Role of Youths in […]. Your email address will not be published. To list some of the major internal factors: Increase in Income : With the increase in the Income, the purchasing power of the population too increases and eventually, there is a rise in prices or price hikes.

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