People's Democracy

Sops for Big Business & MNCs

1. Rs 5,500 crore direct taxes reduced
2. Basic tax rate on corporate sector down from 39.55 per cent to 35 per cent
3. Dividend tax reduced from 20 per cent to 10 per cent
4. FIIs (Foreign Institutional Investors) allowed 49 per cent equity in Indian Companies instead of 40 per cent
5. Removal of excise duties on processed food items to help MNCs like Hindustan Lever, Pepsi, etc.
6. Reduction of excise duties on cars and soft drinks to benefit MNCs

Attacks on the People

1. Increase in postal rates --- postcards 25 paise to 50 paise; letters Rs 3 to Rs 4
2. Sugar in PDS – Rs 12 per kg to Rs 13.25 per kg
3. Excise duties increased on consumption goods like tea, coffee, match boxes
4. Small savings interest reduced – post office savings account 4.5 to 3.5 per cent; post office deposit one year 8 to 7.5 per cent; National Saving Certificate 11 to 9 per cent

5. 5. Public Provident Fund interest --- 11 to 9.5 per cent
6. 6. Procurement of foodgrains to be abandoned by centre and handed over to the states, minimum support prices mechanism to be dismantled

1. PDS subsidy only for persons below poverty line
2. Reduction of government employment by 2 per cent (66 thousands posts) every year, recruitment in nationalised banks curtailed
3. Dereservation of 14 items from small scale industries sector relating to leather goods and toys will affect SSIs employment
4. Increase in house rent; and stoppage of LTC for 2 years for government employees
5. Threat of ‘hire and fire’ polices by allowing retrenchment, lay-offs and closures without restrictions in enterprises with upto 1000 workers.
6. Nearly Rs 850 crore reduction in outlay for university and higher education in the coming year.

4 per cent levy of excise duty on items (which were earlier exempt)

• Tooth brushes
• Candles
• Footwear upto Rs 125 per pair
• Electric bulbs upto Rs 20 per piece
• Glass table and kitchenware
• Black and white TV sets
• Watches and clocks upto Rs 500 per piece

• Laundry soap
• Woolen yarns
• Wool tops
• Viscose yarn supplied to handlooms
• Biscuits of MRP not exceeding Rs 5 and not exceeding 100 grams.

• Drug price control will be reduced substantially leading to increase in prices of medicines.