Bereft of any help for commoners to recover from Covid onslaught, the Union Budget lays its prime thrust on corporatisation and sale of national assets. The Budget lacks any measure to tackle the all-time high unemployment, inflation and economic slowdown. If the country’s economy and its people must be rescued, it is essential that government raise its funding in the basic and social sectors. However, the Budget rather announces complete retreat by govt from any such investment.
The Budget reinforces govt policy of unfettered privatisation. Thus, close on heels of turning over Air India, the Budget announced soon-to-happen f sale of LIC too. The Budget failes to take into account the plight of farmers, poor labourers, the unemployed, youth, women and others marginalised sections. It also lacks insight on what approach to adopt with passage of Covid. The countries of the world are giving up liberalisation, realising it is not now possible to go along while, the Modi government has just intensified its neoliberalisation and privatisation policy, handing tax reliefs for the corporates and accelerating privatisation combined with sale of national assets. Dubbing the Budget as 25-year development plan is pure hoax on part of this government.
The Budget has failed to ingest the national-global economic outlook or take cues from the Economic Survey. There is no mention of measures to tackle rising poverty or inequality. The Budget not just lacks incentives for farming, it has cut down allocations for agriculture compared to provisions made the last time – a revengeful hitout at farmers.
There is no respite for farm loans or any other relief. The previous Budget allocated Rs 5.74 lakh crores. That figure has now been trimmed to Rs 4.63 lakh crores this time – a neat decrease of 20 percent. The promise to pay Rs 2.37 lakh crores in MSP during next fiscal is a rather amusing, given that Rs 2.48 lakh crores was paid to farmers toward MSP in the ongoing year. There is a cut of 25 percent in fertiliser subsidy and another 28 percent in food subsidy. PM Fasal Bima Yojana meant for insuring crops too has seen similar downsizing in terms of funds. Also has been cut down now is allocation for other farm-related activities. And, the allocation for health sector under this pandemic too is grossly inadequate.
To mobilise the economy, it is essential that spending power of the people rises. The Economic Survey reports that the country as reeling under three-decade high inflation. For any uptick in the economy, there must be money into the hands of the peoples. Demand to increase welfare pensions has fallen on deaf ears. Rs 200 per month for ages 60 -70 and Rs 500 for those aged above 70, is all that the Centre shells out toward welfare pensions - amount that has been left unchanged over one-and-half decades now.
There is no additional funds for Employment Guarantee Scheme(EGS) – the key impetus to rural economy. According to last estimates, EGS requires Rs 98,000 crores for FY21-22 while the Budget allocation is just Rs 73,000 crores. Besides, wages nor work days too have not be been upped. The govt has also ignored call to increase EPF. There has been no relief to income tax payers belonging to the lowest slab either.
On one hand, the ordinary folks are milked in the name of austerity and fiscal deficit, On other hand the government has enhanced freebies for the corporates. There is no attempt to introduce new taxes on the super-rich or up the present tax rungs to ease deficit. The Budget has cut surcharge for corporates from previous 17 percent to 12 percent now. More relaxations have been announced for Special Economic Zones(SEZ) – an area hugely beneficial to corporates. The Budget is in effect for the benefit of 10 percent of the population that controls 75 percent of the country’s wealth.
Commencing 5G auction in this year is to benefit corporates like the Reliance. The public sector unit, BSNL, will in no way benefit from the deal given the incomplete setting of its 4G system as of now. Digitalisation is being carried out heavily hinged on privatisation. There is no plan to augment infra in villages so they too reap benefits from the digitalised systems. Greater privatisation is on the anvil in basic infrastructure sectors of railways and airline.
Although, there was no acceding to demands made by the state, the Budget promised to implement projects referring to Kerala model. Digital University, special channels in regional language to facilitate online education for all students, M Services and expansion of optical fiber network are Kerala signature schemes that finds model place in t current Budget. Grant GST compensation for another five years, remit Kerala’s share in Income Tax collections mad by Centre, waiver of cess/surcharge, retain borrowing limit as 4 percent of GDP, raise funding rate for Central schemes, approval for SilverLine -these are some of Kerala’s demands the Budget has not touched upon. Also there is no funding for public sector units in state in tune with present needs.
The Budget emphasised Modi govt will play along with its economic policies , the implementation of which would be as devastative to the country as it would be for its people. The Budget is a continuation of policy that steadily removes all controls over capitalist forces, upholds privatisation as foundation and reduces funding for schemes that help commoners with jobs or financial stability.
There is no announcement whatsoever for improving job conditions or income of the poor. The Budget is designed to make the rich richer and the poor more poor. In bringing out a Budget that does nothing to resolve acute poverty, growing inequality or inflation, the government takes a brutal stance toward commoners and lower rungs of the society. There must arise strong protest against this approach and the Central government.
