The Hindu Business Line : Reforms: PM confident of convincing Left

THE Prime Minister, Dr Manmohan Singh, has said the UPA Government is confident of convincing the Left parties on the need to continue economic reforms while ensuring social justice.

Dr Singh said reforms would continue through consensus with the Left and there was no question of going back on the process.

Addressing newspersons here on Sunday, the Prime Minister also justified the recent decision to hike prices of petroleum products. In the absence of such a decision, which he had termed a "painful necessity," State-owned petroleum products companies such as ONGC and IOC would suffer adversely, he said.

Reiterating the Government's stand that there would be no rollback of petroleum prices, Dr Singh said his Government proposed to discuss the issue with "colleagues in the Left parties" and find "ways and means to convince" them.

He said he shared the concerns of the Left parties, but that his Government had no alternative but to revise the petroleum prices in tune with international rates.

Expressing concern over the rising fiscal deficit of both the states and the Centre at nearly 10 per cent of the GDP, which is high by any international standard, Dr Singh stressed on the need to strengthen the economic system through an effective tax system. However, aimed at ensuring social justice, the UPA Government was focusing on employment generation, education and healthcare.

Targeting the Left's pet concerns, the Prime Minister said, "We want to spend a lot more money on education, healthcare, irrigation and agriculture. Where would that money come from if taxes were reduced? Hence, there is no going back on reforms."