SDPI calls Union Budget 2019 totally disappointing
New Delhi 06 July 2019: The Social Democratic Party of India, (SDPI), has described the Union Budget 2019, presented by the Union Finance Minister Nirmala pampering the rich. Sitharaman in Parliament, as totally disappointing. The vision is missing, notwithstanding the tall claims making India a five trillion dollar economy, from the Budget, the party said.
In a statement SDPI national president M. K. Faizy said that additional duty on gold will increase smuggling of yellow metal. The gold smuggling has been increasing ever since the import duty of 10 per cent was imposed on it. The additional imposts will only make gold smuggling that much more lucrative. That will corrode the value of the rupee further.
Faizy said allowing companies having a turnover of less than Rs.400/- crore pay a corporate tax of just 25 per cent is a sop to the rich. What will really happen in reality is that an Rs.1000/- crore company will try and split its activities into three entities – each having a turnover less than Rs.400/- crore.
He said on the vision front the need of the hour was to create more jobs and reduce the adverse balance of trade. During Modi regime the country made record unemployment. As regards this the Budget has nothing imaginative to offer. He pointed out that the rhetoric in the Budget of accelerated, inclusive and sustainable development receives only limited financial backing. For example defence also gets in real terms no increase. Railways have too ambitious plans but without wherewithal of finances. There is nothing to be said for educational resources too. The total exercise is pure and everything is visualised for 2024. The projections of disinvestment are too unrealistic. The NBFCS and NCLT imbroglio is yet to get stabilised. The Reserve Bank of India has been made regulator for NBFC and that it seems they will turn a blind eye on defaulters. The new defaulters have not been accounted for too. The states have to be paid their GST dues and finance minister is mum on revenue drain. The refunds have been so delayed industries and exporters are borrowing to cover the delays. At the top of the revenue earning is the Rs.2 cess on petrol and diesel which will hike the prices of everything from bread to machinery by not less than 4 to 5 per cent.
On the agriculture front, the statement stated, there is need to reduce water consumption and bring greater value added in agricultural produce. That should have made the Finance Ministry announce subsidies for new technologies like hydroponics. This would have reduced the use of water by 60 per cent, increased yields by over 300 percent and allowed for integration into food storage and food processing. Even this vision is missing. He said that Ms Sitharaman could have been bolder in pushing the reform agenda, lowering corporate taxes across the board, doing away with irksome exemptions which deface the entire taxation system and provided fillip to mid-level businesses and industries to grow more.
Faizy pleaded that our problem with the Budget in particular and the government in general is that instead of going the whole hog for reforms, economic, including land and labour, capital markets, et al, it has settled for an incremental approach. At this rate, we will continue to play catch-up with China indefinitely. And will not realize the goal of a $ five trillion economy by 2022.
Central Office-SDPI
Contact No: 01146014569
SDPI calls Union Budget 2019 totally disappointing
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