MARXIST LENINIST PARTY OF INDIA (RED FLAG)
Central Committee Cochin, 25th July 2024
Modi III’s Budget :
Hoodwinking the People and Pursuing Globalisation.
The first budget of the Modi III government has miserably failed to seriously intervene providing remedies for inflation, unemployment and price rise. Instead, boasting about giving prime priority to Agriculture, the sector directly depended on by almost 61 crore people (42% of the population), the budget has pushed the imperialist globalisation policies further forth. Regarding unemployment, it presents a ridiculous ‘internship programme’ that too, connected with csr funds; and a namesake offer to shoulder employers’ PF contributions. The inflation rates are : WPI 3.4%,CPI 5.2% and food inflation 9.4%. Unemployment rate is : as per CMIE data, the All India unemployment rate is 9.4%.The deflator for manufacturing is assumed by the Economic Survey (ES) to be 1.7%, which is severely criticised by economists to be incorrect. Without being realistic regarding this data, the tall claim about the GDP growth rate of 8.4% can not be accepted.
Though it has fudged many cardinal data, the ES was compelled to state that the GDP growth in the agriculture sector has fallen to 1.4% from 4.7% of last year; to less than a third. The government’s argument that it is due to the dip in grain production, as the monsoon failed because of the 'El Nino' phenomenon is absurd. Grain production in 2022-23 was 329.7 million tonnes and in 2023-24 it has fallen to 328.8 million tonnes; just short of less than a million tonnes. It can not be the reason for the huge dip in GDP growth rate. As the sector that is to provide the majority of work days, this dip has seriously caused further increase in unemployment, inflation and price rise. The budget proposals of a combination of R&D to increase productivity, digitalisation of information about land holdings under Digital Public Infrastructure (DPI), introduction of new seeds etc are pathetically inadequate to remedy it in a socio inclusive and comprehensive plan. Instead it is a move to promote agribusiness. It advocates FPOs and makes empty promises about a ‘national cooperative policy’; without any structural remedy plans and allocations. The creation of FPOs is only a weak knee-jerk reaction to the crisis. Government claims that a target of 10000 FPOs has been set up by 2020-27 and a 'huge' Rs 6860 crore has spent on it, and 'out of which 8195 FPOs had already been formed and for which, ‘Rs 157.4 crores’ has been given as equity grant to 3325 FPOs'. This is extremely ridiculous and absurd when compared to the nature and intensity of the Agrarian crisis. Besides, the farmers' demand for legalised MSP, low interest loans, enforced procurement system etc were not addressed at all. The digitalisation of information about land holdings without wider consultation and strictures is a method to provide data and analysis for agribusiness giants and multinationals. What really needed was an ushering in of a network of producing cooperatives’ - marketing cooperatives’ - consumer cooperatives’ network in apt consortiums.
In industry, tax and customs duty reductions are given to foreign investment. For the Jewellery industry precious metals’ customs duty too is slashed. Both will not improve the situation but will harm respective areas of the domestic industry. Nothing significant is done to give a hand to MSMEs and the non monopoly segment in the manufacturing sector. The ES proposal to sell NHAI assets such as 33 highways in TOT (Toll Operate and Transfer) mode will be disastrous for the industrial inputs costs if pursued. There is nothing for substantial restructuring of railways in this budget. Governmental investments in PSU format are completely discarded. The budget has totally given up the industrial sector. The revamping of existing PSUs to enhance quality, productivity and transparency and a sustained policy of nationalisation mainly targeting the oil, power and mining sectors were the vital need of the hour.
No reasonable declared goals to improve healthcare and education. Expenditures have declined in both ( in healthcare: from 1.9% to 0.28% and in education: meagre 1,08,878 crores against the Budget estimate of 1,16,470 crores) even when both sectors are gravely inadequate and in the education sector there is huge quality erosion. There is nothing to deal with the notoriously malicious NEET exams and the corrupt system of NTA. The states’ demand to run their own methods are not even given an ear to.
Wages had stagnated for six years while inflation went on raging. From 2017-18 to 2022-23 average wages: regular wage - 19,750/- self employed - 12,800/- casual wage - 7,400/-. There is no step taken to implement enhanced minimum wages. Small relief is given to the taxpayer employees but nothing for the poor workers.
All that it has done is to pamper certain states with allocations and declarations out of political partiality while drawing nill for the rest of the states; blatantly violating the federal principles and ethics of equality.
In a nutshell, this union budget hoodwinks the people of all walks of life. The regime religiously pursues the path of imperialist globalisation to the apex; that is, towards a fascist economy of corporatism, allowing everything to be devoured by oligarchic monopolies and the international finance capital. This regime and its fascist political leadership have not at all learned any lesson from the people's verdict.
We urge the Proletariat , the ranks of the peasantry and other toiling masses to rally and fight against this anti people union budget. We call upon the Left and Democratic political parties, sections and personalities to unite to lead the fight.