Internet Edition. June 23, 2008, Updated: Bangladesh Time 12:00 AM 
Home | Daily Ittefaq | FORMICON | Tech News | Ebiz | Photos

Indian govt ally quits over high inflation

AFP, New Delhi

An ally of India's coalition government on Saturday withdrew its support to protest high inflation, adding to the woes of Premier Manmohan Singh, under fire from leftist partners over a nuclear deal.

Schoolteacher-turned-politician Mayawati, who uses one name, announced she was ending her backing for Singh's Congress party-led government after accusing the coalition of failing to insulate the poor from spiralling prices.

"The Congress party has neglected poor workers as well as the Dalits (low-caste Hindus) and so my Bahujan Samaj Party (BSP) is withdrawing support from the government," said Mayawati in Lucknow, capital of Uttar Pradesh state.

"This government has failed miserably to check inflation and the rise in prices of essential commodities-especially food items-and is pursuing policies which are not in the interests of the people," she said. Mayawati, chief minister of Uttar Pradesh, also cited alleged neglect by Congress of her BSP-led provincial administration.

The BSP, which has 17 MPs, had given outside support to the United Progressive Alliance (UPA) government since it swept to power in 2004.

The BSP's move will not topple the minority government.

But it comes at a time when 59 communist MPs have threatened to withdraw their support over a civilian nuclear energy deal with Washington and force early general elections.

The government argues that the deal, which would give India access to the worldwide civilian nuclear energy trade even though it has not signed global non-proliferation pacts, is crucial for the country's energy security.

Mayawati's move came a day after inflation shot to its highest level in 13 years, accelerating to 11.03 percent from 8.75 percent a week earlier after a hike in state-set fuel prices.

The rise in inflation has hit India's poor the hardest.

Some political analysts, however, suggested Mayawati's departure could help the beleaguered prime minister.

Do you like the new site? Do you have any improvement suggestion? Please drop us a line.

 

 
Privacy Policy | Feedback | Contact Us