The government may blink yet, but a day after approving a double whammy, okaying hike in diesel prices, as well as limiting subsidized LPG cylinders to 6 for a family, the UPA is braving the political storm. Opposition, as well as allies have been quick to distance themselves from the centre's decision, demanding a roll-back, of what the TMC is terming as a 'anti-people' policies. Its not only Mamata, who has pilloried the government for its attempts at reducing the ever-widening fiscal deficit. Subsidies on diesel, and LPG are costing the government nearly Rs 2 lakh crore. With Thursday's decision of hiking prices, the government is looking to shave Rs 21000 crore off that figure. Analysts point out that while politically it may have been a bitter pill for the govt to swallow, high subsidy bills had become untenable.
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