A great opportunity lost – Budget 24-25

Random Reflections 

The election result of June 4th gave a clear message to the ruling dispensation. They were reduced to a minority and had to depend entirely on a few allies to remain in power. This is despite votes stolen in at least 76 constituencies as per the report of an independent commission whose report was released a few days back.

They should have remained in opposition. They didn’t.

The expectations of the people from the budget were

• People want prices to be brought down 
• People want employment 
• People want free and quality education at least up to the school level 
• People want quality health care. They have not forgotten the disappearance of private Hospitals during COVID-19 and the tragic deaths. 
• The farmers want a minimum support price for all farm produces at the C2 + 50 formula 
• Farmers want a one-time debt waiver which will be a fraction of what has been written off for the corporates through  IBC and without  IBC 
• With the doubling of charges by Jio, Airtel etc. There was an expectation that BSNL and MTNL would be revived and provide 4G. 
• People expected that the public sector would be strengthened to create employment 
• People expected that Railway Safety will be given priority and Railways will be strengthened 
• People expected that Federalism will be given priority to Unite the Nation 
• People expected that wealth tax will be brought back with a more  stringent formula 
• People expected that the GST will be reduced as it’s burden is more on the bottom 50% 
• People expected that the corporate tax reduction would be restored if not increased further. 
• People anticipated that inheritance tax and Financial Transaction tax may be introduced.
• People expected that the farm sector, MSMEs, SSI, Village Industries and  Artisans will get support 
• People expected that the SBI Chairman’s demand for waving tax on interest earned from Bank Deposits would be implemented as the interest  paid on deposits has come down from 13% to 6.5% 
• People expected that the HinduRashtra agenda would be given up 

There was a great opportunity for Mr Modi to have a course correction. To change the Policies and Budget expenditure to support the majority instead of a minuscule minority. I am not blaming Ms.Nirmala because she can’t decide anything on her own.

• It’s a great opportunity lost. No effort has been made to reduce the prices of essential commodities by reducing GST the price of Petroleum products and providing support mechanisms to farmers through MSP 

• The employment promises are actually freebies to Corporates. 20 lakh apprenticeship in 500 top business houses per year at a Pitttance of Rs. 5000 Pm to the youth who will not be able to even pay rent in these locations is a mere exploitation. There is no guarantee that they will be absorbed after 1 year 

Actually, if this is given to the smaller MSMEs that will generate real employment 

Similarly giving support to Companies which enroll in the Employees Provident Fund is also a subsidy. These companies, if mandated to make these employees permanent that will really help. But that’s not there.

• Education loans of Rs.10 lakhs to 1 lakh students per year are already given by Banks to students of IIT and NIIT. Banks give to more students. What are you giving Modiji? 3% interest suspension. which they will get if they repay if they get employment. This is depositor’s money, not the Government money which banks lend
• There is absolutely no plan or budget for making school education free. No country has progressed without free, compulsory and quality education. The money spent will be an investment not an expenditure. 
• There is no increase in the Health budget with more viruses emerging and with IMR still high, except in South India, healthcare needs a priority, not health Insurance to help private hospitals 
• Why can’t you provide MSP at C2 + 50 formula? This was demanded even by the daughter of Dr M.S. Swaminathan when he was honoured. For years the farmers have been struggling and too many have lost their lives. 
• One-time debt waiver for loans up to Rs. 2 lakhs to small farmers and fresh credit to them will save them and save agriculture which will generate employment. This again is an investment, it will be better than what we spent on infrastructure, to help the rich 
• The Government is outsourcing everything in BSNL to Tatas and MTNL is wound up. ITI is struggling and at the mercy of Tatas. If BSNL, MTNL and ITI are not supported, the entire communications will go to the private hands which will be dangerous for the country. The outsourcing and contract jobs pay very little to the well-qualified youth. Even TCS’s salary is low. 

The public sector provides jobs with a reservation policy. It gives surplus and tax instead of supporting them, the surplus they creates is taken away by the Government and they continue to talk of privatisation

It is unfortunate that the FM has said the cabinet has decided on privatization and it will be implemented. Panagraiah is obsessed with Privatisation. He spoiled the Panning Commission and now he will destroy the Finance Commission.

The Industries Minister has been asked to shut his mouth and he is welcoming the budget against his consciousness. His voice against privatisation has been strangled.

Railway safety, more trains, better track maintenance, doubling of tracks and increasing passenger trains are the demand, not Vande Bharat and Bullet trains. We need a separate Railway Budget Again. 

• Federalism has been given up by supporting only Bihar and Andhra Pradesh at the loss of states which voted against BJP. This is not Governance. This is not what you promised. This will create DISUNITY
• Wealth tax, Inheritance tax, Financial Transaction tax for large trans and corporate tax can provide adequate money for development. GST has to be reduced. It is paid by the majority including the poorest. But this Govt doesn’t care because they only support the richest. 
• What is promised to MSMEs are loans. The corporates get loans at less than 5%, 6%, 7% etc. but MSMEs don’t get that. They are chased to the NBFCs 
• The opening of branches by SIDBI is welcome. Asking Banks to appraise loans by themselves is welcome because the consultants and credit agencies are not honest (many of them). The Banking sector is going to be pressurized for Mudra loans and skill loans for which they need more manpower. All this requires immediate recruitment in the Banks and a good training system. Will the FM give directions for an immediate doubling of staff by the banks? That will transform the entire Country, village, Cottage and Khadi Industries will revive. The traders will also benefit. The employment will grow and the economy will grow 
• A waiver of tax on interest from fixed deposit is needed. RBI Governor is lamenting that people are interested more in mutual funds where interest Concession is available and better returns are available 

The Bank depositors are really suffering due to the low interest paid to them. As they move away, Banks go to the Bond market and pay more interest 

The announcement in the Budget that offshore exploration for minerals; support to shrimp exports; and National policy on cooperation needs to be watched carefully 

Lastly outside the budget, allowing Government employees and public sector employees to join RSS for the agenda of Hindu Rastra is against the will of the people. In the next budget, there may be an allotment for training RSS members in the Government. 

Beware my countrymen and women. There is no policy change at any area after the election results. The economic survey has given some good suggestions which are ignored but the Economic Survey’s statistics on Income Inequality, MSMEs and Employment are far from the truth. 

Lies, Utter Lies and Statistics 

Thomas Franco is the former General Secretary of All India Bank Officers’ Confederation and a Steering Committee Member at the Global Labour University.

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