Left146;s Common Minimum Protest

Whoever expected fireworks from the Marxist camp on budgetary proposals to increase foreign direct investment in crucial sectors will have t...

Whoever expected fireworks from the Marxist camp on budgetary proposals to increase foreign direct investment in crucial sectors will have to be happy if the Left trade unions 8216;8216;take to the streets8217;8217; as indicated today. No demand for rollback, no rocking the government. The CPIM politburo8217;s nuanced statement, prepared after exhaustive analysis by the party leadership and Left economists, supports P. Chidambaram8217;s aam aadmi-focussed budget with a few reservations.

Even as CPI MP Gurudas Dasgupta vehemently opposed the decision to increase FDI cap in insurance, telecom and civil aviation and vowed to take the issue to the streets, the CPIM8217;s criticism comes as late as the ninth paragraph in its 10-para statement.

Even on the issue of PF interest rates, the CPIM merely notes that the 8216;8216;the maintenance of 8 per cent interest rate on PPF, GPF and Special Scheme and the application of EET will adversely affect the interests of employees and pensioners.8217;8217; The opening line of the statement reflects the Left approach 8212; 8216;8216;The Finance Minister8217;s speech indicated his concern for agricultural development, employment generation, health, education and the overall conditions of the rural poor.8217;8217;

It goes on to welcome the two per cent cess on taxes for education, revival of the Rural Infrastructure Development Fund, proposals for repair for water bodies and a nationwide water harvesting strategy. The expansion of the service tax net, fresh exemption from the tax net, and the reduction in the interest rate on loans to states have also been welcomed.

The criticism in the penultimate paragraph of the statement is also muted. 8216;8216;Certain measures announced in the Budget speech are unjustified, are causes of concern8230;Measures to increase the caps on FII investment in domestic debt instruments and in securities in certain sectors, as well as allowing banks greater exposure in the capital market can give rise to volatility without providing any evident benefits to the economy.8217;8217; The decision to divest NTPC shares is 8216;8216;a source of disquiet8217;8217;, increase in budgetary support for the Central plan of Rs 10,000 crore 8216;8216;although welcome, is far from adequate8217;8217;.

8216;8216;Our concern was that it should reflect both the people8217;s mandate and the CMP,8217;8217; politburo member Sitaram Yechury told The Indian Express. Yechury was particularly happy with the decision to set up a Board of Reconstruction of Public Enterprises 8212; a Left suggestion in the pre-Budget meets with the PM. Unlike the BIFR which 8216;8216;takes an inordinately long time to take decisions8217;8217;, the new board will take up cases one by one and expeditiously decide on a revival programme or alternative strategies, Yechury said.

He, however, indicated that the Left would protest both inside and outside Parliament against the divestment of NTPC and on the FDI and FII issues.