Chidambaram says govt to go for general elections in Apr-May

[K.Karthik Raja]

Chidambaram says govt to go for general elections in Apr-May
Wednesday, Jul 9

CHENNAI - Finance Minister P. Chidambaram today said the Congress-
led
United Progressive Alliance government at the Centre will go for
general
elections in the country as per schedule, in Apr-May.
"Elections will take place according to party leaders. Elections
will be
held according to schedule. Elections will happen in Apr-May 2009.
These are
all hypothetical questions," Chidambaram said, on the sidelines of a
function
here to lay the foundation stone of Indian Bank's head office
building.
On Tuesday, the Left parties announced the withdrawal of support
to the
UPA government on differences over Indo-U.S. civilian nuclear
agreement.
Today, the Left parties, having 60 lawmakers in the lower house of
Parliament, officially submitted their letter withdrawing support to
the
government to President Pratibha Patil.
They also asked the president to convene parliament session at the
earliest, and said the UPA government should seek a trust vote.
"I am still hopeful that the Left parties will support us on
specific
items of agenda," Chidambaram said.
.
HANDLING INFLATION
The finance minister said the government will be able to handle
rising
inflation.
He said the government has witnessed high inflation in the past,
and has
been able to bring it down successfully.
Chidambaram said he sees no reason why the UPA government will not
be
able to tame inflation this time too.
For the week to Jun 21, India's Wholesale Price Index-based
inflation
touched a new 13-year high of 11.63%, compared with 11.42% a week ago.
.
MONETARY MEASURES
Chidambaram refused to comment on whether Reserve Bank of India
will take
further monetary measures to control inflation.
"Ask Governor (of RBI), he is in town," Chidambaram said.
RBI Governor Y.V. Reddy is in Chennai for the central bank's
routine
board meeting, scheduled on Thursday.
On Jun 24, RBI increased the repo rate by 50 bps, and cash reserve
ratio
by 50 bps--to be effective in two stages. End