SDPI calls Union Budget 2019 totally disappointing

30 Views No Comment

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.

About the author

Leave a Reply

Your email address will not be published. Required fields are marked (required)