Privatisation And Price Rise
THE Budget 2019 tramples upon the hopes of the people who, in the face of severe crisis of livelihoods and social security, just a month ago had voted Modi 2.0 to power. Finance Minster Nirmala Sitharaman has opened the gates further for handing over profitable PSUs to corporates. Her first budget attacks the hard earned legal and constitutional rights as citizens of the workers and farmers.
The real growth potential of the country's economy has actually been compromised by further opening up of the economy to the foreign capital with increased ease in FDI measures announced in single-brand retail. The FDI has also been opened up in aviation, insurance, media and animation sectors. People in agriculture and health sector are unable to get proper insurance coverage when in distress, and now it is going to be further complicated with more FDI and privatisation of the insurance sector. To compromise PSUs with a higher foreign shareholding cap, as proposed in this budget, is against the people's interest.
The central government has announced long-term planning for disinvestment in public sector units including Air India. For railways, disinvestment amounting to Rs 50000 crore has been announced. So this Budget will further speed up privatization of Government and public sector companies. The ‘One Nation One Power Grid’, and setting up a separate grid for water and gas, will lead to complete hand-over to and control of these national resources by corporate companies.
People already reeling under the burden of increased fuel prices will be hit by an additional cost in the form of hike in both excise duty and cess. This will lead to all-round price rise for common masses by increasing freight charges and passenger fare.
Institutionalising Exploitation, Unemployment, and Inequality
The Budget talks about changes in labour laws aiming to curtail the rights of workers to organize and collective bargaining. There is not a single word in the budget about creating new jobs, nor about increasing minimum wages, wages under MNREGA and strengthening social security. This budget will further aggravate unemployment and inequality, and is anti-worker.
Fraud with Farmers
There is nothing in this budget for farmers, who are compelled to commit suicide and are reeling under conditions of drought. With corporatization of agriculture and control of MNCs over 85% seed market, the announcement by Modi government of ‘agriculture with 0% cost’ is a joke with farmers. The announcement of creating 10,000 productive groups of farmers is also a fraud with them. This budget is a blow to the expectations of farmers, who are expecting some concrete measures from the government for their demands of debt waiver and implementation of recommendations of Swaminathan Commission. The announcements of ‘Jal Shakti Abhiyan’ in 1592 Development Areas and provision of drinking water for every household by 2022 under the scheme of ‘Jal Jeevan’ is another jumla of the government.
Tax on big corporates who constitute hardly less than one percent of all companies needed to be increased but this is contrary to the pro-corporate orientation of the government.
Concealing Bank NPAs
On the one hand the government is claiming a big decline in NPAs of Banks, and according to the Budget, 6 Public sector banks have recovered from their debts. Moreover, in this Budget the tax on transaction with these banks has been further increased. And yet, the provision in Budget of allocating Rs 70,000 crore to public sector banks, exposes the reality of the above cited reports of the government. Actually, the government is silently using taxes paid by people to repay the money swindled by companies from banks! This is an attempt to conceal the game of corporates and banks that are converting NPAs into new debts.
Hiding The Reality of Economic Survey
This budget hides the disclosure of the state of Indian economy made by previous chief economic advisor Arvind Subramaniam. The economic survey of previous Modi-1 regime clearly pointed towards declining foreign investment, employment and production. The previous chief economic advisor had revealed that the figures of GDP released by Modi government are 2.5% more than actual, which means that real figures of GDP is 4.5% instead of 7% as shown by the government. So presenting the GDP as $ 2.6 trillion at present and predicting increase to $ 5 trillion in 5 years is nothing but making a fool of the people of the country.
-- Central Committee, CPI (ML)
