[Marxistindia] Union Budget 2021-22

[news from the cpi(m)]

01 February 2021
Press Statement
The Polit Bureau of the Communist Party of India (Marxist) has issued the
following statement:
Union Budget 2021-22: A Colossal Betrayal of the People
The Union Budget 2021-22 is a betrayal of the people caught in the double
crisis of pandemic and recession. It is a classic illustration of the Modi
Government's unshakeable commitment to promoting the interests of a handful
of big business houses at the expense of increasing distress and misery for
the working people. This is reflected in the refusal of the Government to
increase public expenditure notwithstanding its bombastic claims. The
budgeted Central Government's total expenditure of 34.8 lakh crores in
2021-22 is identical in nominal terms to that in 2020-21 - which amounts to
slashing expenditure in real terms. This represents the complete abrogation
by the Government of its responsibility towards the people but shoring up
the fortunes of a privileged few including through their greater control
over the nation's productive assets.  
The apparent increase of the fiscal deficit to GDP ratio of 9.5 per cent in
the year now ending (2020-2021) which Government claims because of increased
expenditure is primarily on account of revenues collapsing. This collapse
happened despite the Government's cynical imposition of a heavy additional
tax burden on common people through the sharp increase in taxes on petrol
and diesel. Moreover total transfer of resources to states and UTs has gone
down in this budget from last year's revised estimates by more than forty
thousand crores. Not only has there been a big shortfall in corporate and
income taxes in 2020-21, the Government is also keen to acknowledge the
'distress' of the corporate sector and the rich by not expecting them to pay
in 2021-22 even the taxes they paid in the pre-Covid period. While the
Budget Estimates for Corporate Tax and Income Tax in 2020-21 were 6.81 and
6.38 lakh crores respectively, the same figures for 2021-22 are 5.47 and
5.61 lakh crores. 
Even the Revised Estimates of Government's expenditure in 2020-21 of 34.5
lakh crores represents an inflation of the actual expenditure, and till the
end of December 2020 only 22.8 lakh crores has actually been spent. The
supposed increase of about Rs. 4 lakh crores in Revised Estimates of the
Central Government expenditure difference over the Budget Estimates is
mainly on account of Budget Provisions flowing from the discontinuation of
NSSF loan to FCI for food subsidy and transferring it to the budget. And
this budget provision for food subsidies is also destined to be cut by 41%
in 2021-22 as compared to 2020-21. 
What the Finance Minister's speech did not reveal was that under several
heads, expenditure in 2020-21 was actually lower than budgeted. These
include Agriculture, Education, Social Welfare, Women and Child Development,
Scientific Departments, Urban Development, Pensions and Disability Affairs
etc. Not only are these cuts being carried forward into the next year too,
even in the few heads of increased expenditure in 2020-21, like Health and
Rural Development, the Budget proposes to cut down expenditures. Despite the
Finance Minister's claim that health expenditure is being increased
significantly, the Budget documents show otherwise. The budget allocation
for Health for 2021-22 is 74,600 crores which is 8000 crores less than the
last year's revised estimates.   It is through such cuts that the Finance
Minister is achieving the cut in total expenditure. This is a gigantic hoax
being played on the people!  
The panacea for this Government is to sell off India's national assets and
privatize even profit making public sector companies. The monetisation
project announced in the budget included sale of valuable land held at
present by public sector companies. The target is to mobilise 1.75 lakh
crores through disinvestment. The increase in FDI in insurance to 74 per
cent is highly objectionable. This drive for privatisation is a subversion
of the national interests and a mockery of the slogan of atma nirbharta. 
The public health crisis created by Covid is far from over and the
expenditures on vaccinations will be only one of the additional expenditures
that is needed. The economic crisis, the most important aspect of which is
the destruction of employment, livelihoods and incomes and the collapse of
demand, requires a much bigger additional expenditure. A Union Budget in
such a background which seeks to cut expenditures from even the woefully
inadequate levels of the previous year and give concessions to corporates
can only be a recipe for disaster.  It will lead to greater people's
distress and increase the obscene inequalities which mark India today.
The Polit Bureau calls upon the people to protest against this pro-corporate
budget and step up struggles for immediate cash transfers, free food and
universal employment guarantee programmes. 
 
 
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