Budget

THE finance  minister  presented  the Budget 2022 in the backdrop of an economic scenario when majority of  the  people  are  facing  job  loss  and  huge  cuts in real income.
   GDP in the current
financial year is estimated to marginally cross the pre pandemic levels. The  private consumption expenditure is still short of the pre-pandemic levels and industries are facing low capacity utilisation and rising inventories primarily because of very low demand in  the  economy. 
    In  such  a  scenario  what was  needed in the  budget was a big push towards job creation  and increasing domestic demand. The budget fails patently in addressing these issues.  What was required was introducing an urban employment guarantee scheme.
        On  the  contrary,  it  has  cut down expenditure by Rs 25,000 crores in MGNREGS and reduced food, fuel and fertilizer subsidies and also the allocations in health and rural development.
       The budget has proposed a growth in total expenditure by Rs 1,74,909 crores from the revised estimates of  202122 but as  percentage of GDP the total expenditure  has  come  down  from  17.8 per  cent  in  2020-21  to  15.3  per  cent  in 2022-23  budget  estimates.   
         The  growth of revenue receipts has primarily grown as corporates were able to accumulate profits  during  the  pandemic  reflected through increased corporation tax realisation and also  garnered  through GST and hike in petroleum prices from indirect taxes  levied  upon  common people.
         However  the growth of expenditure is far short from the growth of revenue receipts and in real terms is even  less  than  what  it  was  in  last  year’s revised estimates. The  squeeze  on  expenditure  is not merely in the central government expenditure. By squeezing the  transfer of resources to states, the state governments are also being forced to do the same.
         These transfers are to  come down from 6.91 per cent of GDP in RE  2021-22  to  6.25  per  cent  in  2022-23. Allocations  to  all  major  schemes for farmers have seen a budget cut. The allocation for procurement to FCI and under decentralisation procurement scheme  has  been  reduced  by  about  28 per cent at a time when farmers are struggling for a legally guaranteed  MSP.
     Allocation of funds for fertilizer subsidy has been reduced by 25 per cent.  Under PM-KISAN, 12.5 crore farmer households are supposed to be provided Rs 6000 each which requires  an allocation of Rs 75,000 crores.  However,  only  Rs  68,000  crores  have been allocated. Allocation for the crop insurance scheme has also fallen by about Rs 500 crores.
        In all the recent years, government has not spent even the meagre allocation for welfare of children. The revised estimates for expenditure on welfare of children is Rs 5,700 crores less than what was budgeted. Nothing has been done to help children cope with the devastating impact of closure of schools and anganwadis.
    Allocation of funds for the welfare of Scheduled Castes and Scheduled Tribes shows a marginal increase in absolute figures but factoring inflation it has come down in real terms.
       Similarly, the renaming of mid-day meal scheme as PM Poshan could not raise the  allocation from Rs 10,234 crores  despite of 35 per cent of children not receiving MDM during the last year.
    The finance minister talked about Narishakti upgrading two lakh anganwadis but the allocation is frozen at the revised estimates at Rs 20,000 crores. Over the last two years, there has been a huge cut in LPG subsidy. Last year, allocation was cut by 60 per cent and another 60 per cent cut has been inflicted in the budget for 2022-23.
        No new allocation has been budgeted for the unorganised workers who were registered through e-shram portals. During the last two years of  pandemic, the rich have become richer.  According to Oxfam, wealth of India’s richest families reached a record high in 2021. 
       The top ten people in India  hold 57 per cent of the wealth.  Yet, there is no proposal to impose tax on these super profits and use these resources to provide relief to the vast majority of suffering people. Therefore, the budget 2022-23 has completely failed in identifying the priorities to provide relief for the common people.  It is a betrayal.
         The Polit Bureau of the CPI(M) calls upon the people to protest against this anti-people, pro-corporate budget demanding direct cash transfer of Rs 7,500 per month to all families outside the income tax bracket and distribution of free food kits. Budget 2022-23 ... contd from front pg