ORGANIZE NATIONWIDE PROTEST AGAINST ANTIPEOPLE CENTRAL BUDGET 2002-03 SINHA'S BUDGET: 'LOYAL TO REFORMS, CRUEL TO PEOPLE' NPMO
Despite all indicators, including the Economic Survey, pointing to the Indian economy reeling under a severe demand recession, Yashwant Sinha, in his budget 2002-03, has addressed only the supply side of the economy, conferring a lot more incentives, benefits and concessions to the corporate houses, Foreign Institutional Investors and the NRIs. He has chosen to be 'loyal to the reforms and cruel to the people'.
The Finance Minister had totally ignored the various suggestions and proposals placed before him by the central trade unions during his pre-budget consultations. Same callousness had been exhibited by him towards the representations made by the various interest-groups representing kisans, agricultural workers, youth, women and students.
The cruel attacks on the common people manifest in the hiking of excise duties by Rs.6700 cr., while cutting down custom duties on imports by Rs.2200 cr.; hiking LPG price by Rs. 40 per cylinder and PDS kerosene by Rs.1.50 per litre, with total phasing out of the subsidy thereon in the next five years; 5 per cent surcharge on income tax in the name of national security; further reduction of interest rates on small savings and Provident Fund to 9 per cent; hike in postal rates; reduction in fertiliser subsidy and hike in the urea prices; and what not. Earlier the Railway budget had targeted the poorer sections of the commuters for attack, besides seeking to corporatise and privatises railway lines and other functions of the Indian Railways, in tune with the recommendations of the Rakesh Mohan Committee. On both counts, the NDA govt. has excelled in its anti-people measures.
Under the guise of 'freedom to farmers', the agriculture sector is sought to be deregulated. Instead of addressing the issue of land reforms, the budget seeks to place the urban and rural land of the country in the hands of foreign and domestic corporates. With the Economic Survey recording that "an absolute shortfall in agricultural employment has occurred for the first time", the plight of the rural population is bound to face further ruination. The 'diversification' proposed to tackle the problem of surplus food grain stocks is nothing but a road map to commercialisation of agriculture.
The entire infrastructure sector, including the major ports and airports, are to be privatised, unmindful of the disastrous implications for the national security. After the recent privatisation spree of handing over invaluable public assets at throwaway prices, the budget seeks to continue the process of thoughtless privatisation to mop up Rs.12000 cr. in the coming fiscal year. With a marginal reduction in petrol and diesel prices in the immediate run up to the budget, the dismantling of administered price mechanism will lead to successive increase In the prices of petroleum products.
All the plan and non-plan allocations to the States, in the areas of irrigation, power, urban development etc., are linked to 'reforms' implementation. With the pursuit of the Fiscal Responsibilities Bill, the States will be placed under great constraint and forced to cut down subsidies and increase the user charges heftily.
The budget does not grant any relief to the salaried class in the matter of income tax. The move to enlarge the tax net by bringing in the 'perks' and curtailing tax incentives is sought to be continued with just a cosmetic relief for those up to an income of Rs. One lakh. The budget on the other hand doles out tax reduction on foreign companies from 48 to 40 percent. The corporates will be allowed extra depreciation of 15 per cent on new plant and machinery. The NRIs will be free to repatriate interest, incomes etc. up to 50 million dollars. Mutual Funds have been permitted to freely invest in stocks abroad. These indicate a definite intent to pamper to the privileged and rich in India and abroad.
While the unemployment situation in the country has assumed alarming proportions, the budget only seeks to continue the strategy of promoting jobless growth, inflicting grave injury to the future of the youth in both rural and urban India. Downsizing the Govt. departments in pursuance of the ten reports of the Expenditure Reforms Commission, retrenching over a million employees under a forced VRS and restricting future recruitment in Central Govt. services to less than one per cent -are all reprehensible moves
The anti-people budget calls for severest condemnation and protest. The National Platform of Mass Organisations calls upon all sections of the people and all the mass organisations in the country to jointly resort to mass actions protesting against the Railway and Central budgets and stage powerful mass rallies on 4th March 2002.
