Latest


Budget will widen income, wealth inequalities: CPI-M

  •   Sat, Feb 28 2015 08:37:27 PM

New Delhi, Feb 28 (IANS): The CPI-M Saturday denounced the union budget as pro-rich and said it will only widen "the already large income and wealth inequalities" in the country.

"This budget, while providing a rich bonanza for the rich - foreign and domestic corporates - ensures further widening of the already large income and wealth inequalities," it said in a statement.

"So much for the slogan of 'achhe din aanewale hein'," the Communist Party of India-Marxist said.

It said the 2015-16 budget carried forward "more aggressively the neo-liberal economic agenda of the earlier UPA government".

It said both foreign and domestic corporates had hugely benefited from the budget.

"The budget proposals will reduce direct taxes by Rs.8,315 crore benefiting the rich and increase the burdens on the people through indirect tax hike of Rs.23,383 crore," it said.

Apart from direct tax benefits, wealth tax had been abolished and corporate tax targeted to reduce from 30 to 25 percent, it said.

"Instead of expanding public expenditures to stimulate growth, employment and people's livelihood, these expenditures are being squeezed."

For 2015-16, the estimated gross tax revenue stands at 10.3 percent of GDP which was less than last year's budget figure of 10.8 percent, it said.

"Expectations of 'tax buoyancy' by the finance minister is, hence, pure imagination."

It said the much higher allocation to the states in the name of "cooperative federalism" was nothing but transferring the amounts from the central schemes to the states.

"The total transfers to the states, including loans and grants, as a share of GDP will, in fact, be lower than what was budgeted for 2014-15."

The CPI-M said that with a pre-occupation to contain fiscal deficit at 3.9 percent, the budget undermined the need to stimulate domestic demand by targeting social sectors.

"The allocations to MNREGA and food subsidy has almost stagnated, in real terms, which shows that the government is not at all serious in implementing food security and generating employment.

"Total subsidy as percentage of GDP has come down from 2.1 percent to 1.7 percent. The allocation for health and family welfare has come down from Rs.35,163 crore last year to Rs.29,653 crore.

"The total budgeted figure for housing and urban poverty alleviation has come down from Rs.6,008 crore to Rs.5,634 crore...

"On the other hand, the reduction in the revenue loss tax concessions given by the central government to the rich (subsidies to the rich called 'tax incentives') are more than the actual fiscal deficit...

"Hence, our economy is suffering from a deficit burden primarily due to such subsidies to the rich, not due to subsidies for the poor."

 
  

Top Stories

Pope Francis passes away at 88, Vatican confirms

  •   11 hours ago    40

Success in PU can mean life victory: BOSCOSS makes it possible

  •   14 hours ago   

Comment on this article

  • Dr S Deman, London

    Tue, Mar 03 2015

    Budget is an instrument of fiscal consolidation to achieve desire objectives set forth in the plan or before the nation consistent with the spirit of the Constitution. However it may conceal more than what it reveals, therefore as Mrs Joan Robinson puts very eloquently, “People should understand economics so that they are not fooled by the economists”. Prior to the presentation of the annual budget in the parliament Annual Economic Survey is carried out to set the tune of the budget. Although first formal budget of the BJP has raised a lot of expectations, but it also created a great deal of anxiety among the people as to whether the budget will be a ‘big bang’ or a black-hole, ‘make it’ or break it’? it rarely plays to the tune of the Annual Economic Survey. Hence, budget is an intention of the government rather than some real ground work to realise the desire objectives. Hence, like predecessors Finance Minister Arun Jaitely’s speech was beautifully worded, but it had very little substance and roadmap for practical reality to translate the pronouncements into the actions.

    In the light of pre-election promises of PM Modi as to delivering on employment, black money, inflation and lifting people from poverty line a few comments are necessary. No doubt a few good steps have been suggested to boost investment, for example:
    (i) Setting up overseas offices without tax liability, fix deposits on gold in metal accounts, visa upon arrival facility to 150 countries, etc.
    (ii) Abolishing wealth tax and putting a 2% surcharge on wealth over 1 crore,
    (iii) Reducing corporate tax from 30% to 25% in five years,
    (iv) General Anti Avoidance Rule to deal with the evaders and sever sanction up to 7-10 years imprisonment has been suggested, etc.

    However, real difficulty with abolition of wealth tax is it provides guarantee of no tax in future and there is no guarantee that this will help collecting more revenues given the fact the collection rate is only 23%.

    DisAgree Agree Reply Report Abuse


Leave a Comment

Title: Budget will widen income, wealth inequalities: CPI-M



You have 2000 characters left.

Disclaimer:

Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. Daijiworld.com will not be responsible for any defamatory message posted under this article.

Please note that sending false messages to insult, defame, intimidate, mislead or deceive people or to intentionally cause public disorder is punishable under law. It is obligatory on Daijiworld to provide the IP address and other details of senders of such comments, to the authority concerned upon request.

Hence, sending offensive comments using daijiworld will be purely at your own risk, and in no way will Daijiworld.com be held responsible.

You might also like