The Times of India 30.08.2009
Urban living may get costlier: Montek
BANGALORE: Urban India will have to be prepared for an increase in price of government services.
Deputy chairman of the Planning Commission Montek Singh Ahluwalia on Saturday said urban living is expensive in other countries but not in India because government services such as water and electricity are underpriced.
"Another 150 million people are expected to be added to our urban population in the coming decades. Government budgets won't be able to cater to such a big addition by continuing to underprice its services," he pointed out.
Ahluwalia, who addressed members of the Federation of Karnataka Chambers of Commerce and Industry (FKCCI), dismissed concerns raised by members on price rise, especially in farm products such as sugar, pulses and milk.
"Price rise benefits farmers. Besides, when we are pushing for 9% growth, some amount of inflation is inevitable," he pointed out.
On this year's drought, Ahluwalia said it may bring GDP growth below the expected 7%. "We are prepared to manage drought this time. Government food stocks are 16 million tonnes higher than last year, and 30 million higher than two years ago.''
According to him, government stimulus packages around the world are beginning to work but growth is likely to remain low for some more years. "This may also keep India's growth below the targeted 9-10% for another two years."
"Another 150 million people are expected to be added to our urban population in the coming decades. Government budgets won't be able to cater to such a big addition by continuing to underprice its services," he pointed out.
Ahluwalia, who addressed members of the Federation of Karnataka Chambers of Commerce and Industry (FKCCI), dismissed concerns raised by members on price rise, especially in farm products such as sugar, pulses and milk.
"Price rise benefits farmers. Besides, when we are pushing for 9% growth, some amount of inflation is inevitable," he pointed out.
On this year's drought, Ahluwalia said it may bring GDP growth below the expected 7%. "We are prepared to manage drought this time. Government food stocks are 16 million tonnes higher than last year, and 30 million higher than two years ago.''
According to him, government stimulus packages around the world are beginning to work but growth is likely to remain low for some more years. "This may also keep India's growth below the targeted 9-10% for another two years."
