People's Democracy

THE chorus of euphoria whipped up by the bourgeois media around the budget proposals is only natural. The Indian ruling classes, with a vengeance, have unleashed a massive offensive on the livelihood of the vast majority of the Indian people who are already groaning under the burdens imposed by the policies of economic reforms. This is a budget of the corporate sector, by the corporate sector, for the corporate sector. For the people and the Indian economy, this is a demolition budget.

The budget has virtually dismantled the public distribution system. It has virtually abandoned the system of providing minimum support price to the peasantry. This comes at a time when the growth rate in agriculture has been in the negative for the last two years. For the first time since independence, foodgrain production has not only declined in absolute terms; its growth rate has fallen below the rate of growth of population. The food security of India and its people is thus jeopardised.

At a time when unemployment is growing, the budget has banned recruitment. Recruitment boards of nationalised banks have been abolished. The government is to abolish 66,000 jobs every year for the next five years. Private enterprises employing upto a thousand people can layoff workers without any approval, i e, a "hire and fire" policy.

The small scale sector, largest employer in the country after agriculture, has been virtually demolished with dereservation of crucial items.

Further, the budget has hiked the duties on mass consumption items like sugar, postage, tea, coffee, match-boxes, etc. Small savings of the common people will receive less interest. Provident funds of the workers and employees have been cut alongwith a number of other facilities.

On the contrary, the budget nakedly subsidises the rich. The tax concessions given to the corporate sector and the rich is to the tune of Rs 5,500 crore. Income tax rates have also been lowered more for those in the higher income brackets. Multinational corporations and foreign capital have been provided with greater facilities.

As far as our economic foundations are concerned, the budget proposals are simply disastrous. Outlays in crucial social and economic sectors have declined. Lower public expenditure means a contraction of demand in the economy. This, in turn, will lead to contraction in employment compounding the miseries of the people.

Simply put, this budget subsidises the rich and impoverishes the poor. Clearly, the Vajpayee government is sending out signals to imperialism and Indian big business that it is their best agent. In turn, the Vajpayee government is seeking their support to continue to remain in office.

But the Indian people will not allow such a naked assault on their livelihood for the direct benefit of foreign capital and Indian big business. These budget proposals will met by massive protest actions all over the country. For the sake of India and its people, this Vajpayee government must be forced to reverse its policies or else forced to quit.