Date: Friday, February 1,
2019
Press Statement
The Polit Bureau of the Communist Party
of India (Marxist) has issued the following statement:
The Modi government has now become
famous for supressing and manipulating data and offering jumlas to the people.
The Interim Budget for 2019-20 is yet another exercise in the same vein. The
acting Finance Minister made tall claims during his speech about the record of
the Modi government and promises of a rosy future for all Indians – which was a
cruel joke played on the suffering people of the country.
The Budget presented before Parliament
today cannot be the final budget for this year because
the government presenting it, and the Lok Sabha considering it, will both cease
to exist less than two months into the financial year to which the budget
pertains. The CPIM would like to point out that the final picture of the
measures for revenue mobilization and of expenditure allocations for the
financial year 2019-20 will take shape only after the
people of the country have spoken their mind through the elections to the 17th Lok
Sabha. It is a testimony to the BJP’s fear and desperation about what that
verdict of the people might be that it has sought to use what is an interim
budget to make promises that are not for it to make.
The figures available for
April-November show that gross revenues from Central taxes in 2018-19 increased
by barely 7.1 per cent over the same period in the previous year. However, the
revised estimates for 2018-19 show an estimated 17 per cent growth in revenues
over actuals for 2017-18! Even after this, revenues are slotted to be Rs.
23,067 crores less than the Budget Estimates announced a year ago. In a repeat
of what it did last year, the Government has put inflated revenue figures for
both income tax as well as GST revenues. Income tax revenues are destined to be
at least Rs. 50,000 crores below the revised estimates. The Revised Estimates
of Central GST Revenues is already below the Budget Estimates by a whopping 1
lakh crores – and the collection figures up to January 2019 indicate that even
this is an unrealistic figure. Clearly, the Government is manipulating the
figures lest the lies it has peddled about the consequences of demonetization
and its tax reform measures are caught out. Despite this revenue shortfall, the
government continues with the exemption of wealth tax introduced by the Modi
government in 2016. The rich people owning the second house are also tax
exempted. Clearly, the Modi government is cruelly following its logic of
squeezing the poor and enriching the rich further.
Attack on State Governments
What is even more shocking is that the
burden of lesser tax revenues is being sought to be transferred to states. The
net revenues of the Central Government in 2018-19 have been kept at a slightly
higher level than in the Budget Estimates – a cut of Rs. 26, 639 crores is
therefore being applied to the state’s share in Central Taxes. Similarly, the
transfer to the GST Compensation fund has been cut by Rs. 38,265 crores
compared to the Budget Estimates even though the GST revenue shortfall showing
up in the Centre’s own budget would also be hitting State Government revenues.
In other words, it appears that the Union Government is shoring up its fiscal
situation at the expense of State Governments – so much for cooperative
federalism.
Jumlas
Farmers: Despite the claim of
making a new allocation of Rs, 20000 crores for the income support scheme for
farmers to implement it from 1 December 2018, the Revised Estimates of total
expenditures for 2018-19 do not exceed the Budget estimates by even that much.
A curtailment of expenditure on other heads, in particular the transfer to the
GST Compensation fund, is therefore where this allocation is coming from. Even
this allocation and the scheme is a fraud that is being played out – what else
can one call a scheme which promises a farmer household of 4 people an income
‘support’ of Rs. 4 per person per day? Having been directly responsible for
aggravating agrarian distress which has destroyed farmers’ incomes by much more
than that, the Government is covering up for the betrayal of its promise of a
MSP one and a half times the production costs.
The pension scheme: Pradhan Mantri
Shram-Yogi Mandhan – is another such jumla, promising a pension of a measly Rs.
3000 a month after 32 years of a person contributing Rupees 100 every month –
what does this say about what is the economic status the Modi government
expects the supposed beneficiaries to have after more than three decades? And
what does the government have to commit itself to today for this great
‘promise’? The ‘royal’ sum of Rs. 500 crores which in addition would not be received
by the beneficiary today but perhaps go to some insurance company or pension
fund.
Employment: The Acting Finance
Minister while talking about the economy situation avoided any mention of the
NSSO data that would have caught out the claim that the job seekers have become
job creators leading to significant growth of employment. Of course the
employment seekers have to become employment creators – not because government
policies have enabled them, but because these policies have dried up the jobs
and people have to find some way to survive. This budget has put an official
stamp on “pakoda” logic.
The Union Budget for 2019-20 is
therefore yet another reflection of the bankruptcy of the Modi Government. No
amount of spin can, however, remove the distress that farmers feel or the
poverty and joblessness people actually experience. This grim reality will
assert itself in the 2019 electoral verdict.
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