CPI(ML) Statement on General Budget 2015

Arun Jaitley’s first full-fledged budget is full of sops for the rich while the common people have been burdened with more taxes and cuts in social sector spending. The budget continues to shower benefits and exemptions on the corporate sector, but in spite of major decline in global oil prices, no relief has been extended to the common people and the deprived sections of the society.

Wealth tax has been abolished and corporate tax has been promised to be lowered to 25% over the next four years. The 2% surcharge announced on income above Rs one crore can be no substitute for a tax on wealth and inheritance. The budget talks about social security but expects the people to fund their own pension and insurance while public spending on projects like National Rural Health Mission, Mid Day Meals, Sarva Siksha Abhiyan has been subjected to huge cuts.

The Finance Minister has talked big about penalising black money holders, but he has left open all the tax evasion routes by once again postponing the introduction of GAAR. In the name of promoting Yoga, the government has exempted the growing business interests of Babas from taxation while the common people are expected to pay more by way of enhanced service tax. Higher telephone bills and internet charges fly in the face of the government’s own slogan of ‘digital India’.

While successive governments have been complaining of lack of resources to fund welfare projects or promote employment-intensive sectors like agriculture and small enterprises, corporate exemptions and defence budgets have been soaring relentlessly and the trend has continued in this budget.

CPI(ML) calls upon the government to restore wealth tax and introduce inheritance tax, reverse the cuts in social sector spending and enforce GAAR with immediate effect to check tax evasion and black money accumulation. We appeal to the common people and organisations working in their interest to exert mass pressure on the government to this effect.

Prabhat Kumar

For Central Committee,

CPI(ML) Liberation

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