Industrial Lobbies influencing the Finance Ministry?
The CAG’s report is very uncharitable to the high officials of the Board and the Ministry. Regarding increase of abatement from MRP price, the CAG observed that
“The Ministry of Finance stated that these abatements were increased either consequent to increase in certain element of abatement such as sales tax or review of abatement in view of genuine requests/representations received from the industry Associations.
The reply of the Ministry is not tenable as it reinforces the fact that the decision to increase the abatement on these commodities has been influenced by the influential industry lobbies and not due to any changes in the tax structure”.
If redressing a genuine grievance from the trade is branded as influence by influential lobbies, who will ever dare to be fair? The CAG has no compulsions of attending to public grievances, but can the ministry be a mute spectator for fear of Audit? The Board and the ministry may be wrong but should they not have some power to decide on issues concerning their departments without fear of Audit questioning their bona fides?