New Delhi: Expressing concern over the rising inflation graph as reflected in the Mid-Year Review, the CPM (Communist Party of India-Marxist) said today (Dec 14, 2004) the UPA (United Progressive Alliance) Government to stop subsidising private oil companies.

Asserting that the growing inflation was primarily due to the petroleum price hike, party leader Nilotpal Basu told reporters that the UPA Government was adopting a "fiscal fundamentalist attitude" in this regard and ignoring the concerns of those who elected it.

Asked if the Left and UPA could coexist despite such differences, he said, "We are absolutely transparent about our differences... Our struggle will continue till the Government gives up its fiscal fundamentalist attitude".

"Unlike the NDA (National Democratic Alliance), our UPA is not a unilateralist coalition where every party will toe the line of the single largest party," Basu said.

Private oil refining firms were getting refining margins at the same rate as the public sector oil companies and enjoying the same subsidy as the oil PSUs, he said, adding that the Centre should be "even-handed" in dealing with the concerns of both, the corporate sector and the people.

On differential taxation system of the State Governments on petro products, Basu said a central taxation system like value added tax should be in place to deal with this situation.

However, the fiscal health of all the State Governments was in a "crisis" and most of the revenue they earned went to pay salaries of their employees or service high debts.