Chidambaram’s Budget Woos Foreign Investment, Hits Common Indian People
ebruary is over and the twin budgets for 2013-14 – the Railway Budget and the General Budget – have been tabled in Parliament. If 2014 elections are advanced by a few months – as is being expected quite widely – these could well be the last pre-poll budgets. Political observers were naturally eager to read the budgets as pre-poll political signals. The budgets also generated additional interest because of the challenging economic environment – the global economy is still mired in recession and the much talked about India growth story has also been running out of steam and the growth rate figures have hit the lowest point in last ten years. The budgets are out and the signals are loud and clear – the government has nothing to offer to the people except price hikes and cuts in subsidies.
The Railway Budget 2013-14 was presented by a Congress minister after nearly two decades. Substantial hikes had already been announced in railway fares a month before the budget – the budget was used to hike fares again by other means like reservation and cancellation charges, tatkal fees and superfast train charges apart from raising freight rates. The pre-budget hike in fares was actually made to set a trend of deregulating railway fares on the lines of petrol and diesel prices. The budget has now made a policy announcement to this effect whereby railway fares will keep getting upwardly revised between two budgets making fare increase a continuous process.
Concerted efforts are on to create a media climate in favour of a fare hike and sell the myth that increased fares would pave the way for improved services. The government’s idea of better amenities is meant primarily for upper class passengers who have been promised super-luxurious ‘Anubhuti’ coaches in Rajdhani and Shatabdi Express trains and ‘executive waiting lounges’ in select ‘world-class’ stations. For common passengers rail travel will be costlier but not any safer or cleanlier.
If Anubhuti coaches marked the dream theme of Pawan Bansal’s rail budget, Chidambaram’s eighth general budget has been aimed at wooing foreign investors while making the common man pay for ‘crisis-management’. The CSO estimates have given a lie to Chidambaram’s recovery claims and talks of returning to the trajectory of high growth. Far from hitting the double-digit mark, the Indian economy is back to the old days of 4-5% annual growth rate with agriculture and manufacturing stagnating at 1-2% level. Chidambaram would like us to believe that the Indian economy can be pulled out of this morass by foreign investors and that the latter had to be wooed at any cost to come to India. After allowing FDI in multi-brand retail and pension fund, Chidambaram has used this year’s General Budget to woo tax evading Foreign Institutional Investors. Almost echoing the adage ‘beggars cannot be choosers’ Chidambaram said in his budget speech that foreign investment was an imperative and India did not have any choice in this regard!
Last year’s budget had introduced the General Anti-Avoidance Rules (GAAR) to check tax evasion by foreign investors. But its implementation was soon stalled as the government gave in to the threats of an exodus by foreign investors. Pranab Mukherjee deferred the application of GARR till April 2013. The Indian government gave in even as there has been no evidence of foreign investors pulling out from countries like South Africa and China where laws like GAAR are already in force.
On resuming the charge of finance Ministry in August 2012, the first thing Chidambaram did was to defer the applicability of GARR by three years and before this year’s budget he undertook extensive foreign trips to reassure foreign investors that there would be no tax hike and that the tax administration would adopt a lenient and friendly posture vis-a-vis foreign investors based in tax havens like Mauritius and Cayman Islands. Not only has he kept his promise but he even apologised for repeatedly after the budget for any confusion arising out of any ‘clumsily worded’ provision in the budget! Instead of issuing warnings against tax evasion, Chidambaram would like to lure foreign investors with assured impunity for tax thefts.
An interesting case in point is the Vodafone tax suit. Indian tax authorities had taxed British telecom major Vodafone to pay taxes worth $ 2.5 billion for acquisition of an Indian telecom company Hutchinson Essar. Bombay High Court had upheld the tax claim which was subsequently turned down by the Supreme Court. The subsequent amendment to the Income Tax Act 1961 enabled the government to overrule the SC verdict and reinforce the tax liability on Vodafone. In a blatant interference with the functioning of Indian tax administration, during his recent visit to India British Prime Minister David Cameron questioned the tax claim on Vodafone and ‘hoped’ that the Indian government would sort out the tax dispute with Vodafone. And now Chidambaram has promised to favourably resolve the dispute. And incidentally, if Vodafone escapes the tax dragnet, other deals like Idea Cellular-AT&T $150-mn deal, Mitsui-Vedanta's $981-mn Sesa Goa deal, GE-Genpact $500-mn deal and Kraft-Cadbury $19-bn deal will all follow suit and foreign investors will make merry.
The so-called super-rich tax announced in this year’s budget is just 10% surcharge on 42,800 people who have declared taxable income over Rs 1. Contrast this to the corporate tax and customs duty exemption and the leniency being shown on FII operating from tax havens like Mauritius and Cayman islands and it is clear that Chidambaram’s crusade against tax evasion is sheer deception and his talk of reducing fiscal deficit is nothing but an exclusive war on the poor and the common people while showering concessions on the rich.
Party's statements on General and Rail Budget
Budget 2013-14: Exercise in Economic Escapism and Political Gimmickry
New Delhi, 28 Feb. 2013
UPA Government's General Budget 2013-14 has refused to recognise the economic hardship inflicted on the common people by the ongoing economic crisis, let alone find ways to reduce the burden. No serious attempt has been made in the budget to protect the common people from the soaring prices of all essential commodities.
The paltry allocation of Rs 10,000 crore for the proposed Food Security Act shows the government's callous attitude to this biggest electoral promise made by the UPA in the 2009 Lok Sabha election. By contrast, the outlay on defence has exceeded Rs 200,000 crore even as it has been exposed time and again, most recently in the AW-101 chopper scam, that the defence import/purchase bill is routinely inflated to provide for hefty kickbacks.
The 10 per cent surcharge on the tax-paying super-rich is just shallow tokenism compared to the projected tax exemption of Rs. 68007.60 crore promised to the corporate houses. The total revenue foregone has reached a whopping 5.73 trillion rupees.
Chidambaram as Home Minister failed to make India any safer for women – in fact, his brainchild Operation Green Hunt has been notorious for targeting women. Now returning as Finance Minister, he has proposed a fund in the name of the Delhi Braveheart with a token corpus of Rs 1,000 crore. What was needed instead was a massive scheme to provide safe shelters for working women and single women. Likewise, instead of ensuring cheap and easy credit for women, the Finance Minister has resorted to the gimmick of announcing an exclusive women's bank.
In short, Budget 2013-14 is an exercise in economic escapism, political gimmickry, and of course, statistical jugglery.
Rail Budget 2013-14 : Withdraw Freight Hike and Increased Passenger Charges
New Delhi, 26 Feb. 2013
The rail budget presented today will only add fuel to the inflationary fire faced by the common people. The hike in freight rates will have an immediate inflationary impact and raise the prices of all essential commodities transported by the railways. It is an utter lie to say the budget has not increased fares. Passengers are bearing the brunt of the massive pre-budget hike since 22 January and now they will have to bear the additional burden of increased reservation, cancellation and tatkal fees as well as higher charges for travelling by superfast trains. While disproportionately taxing the ordinary passenger and common people, the budget promises little by way of passenger amenities or to make rail travel safer, quicker and more punctual. The CPI(ML) calls for immediate withdrawal of freight hikes and increased charges levied on the common passenger.
(Dipankar Bhattacharya)
General Secretary, CPI(ML)(Liberation)
Women’s Safety and Welfare Need Adequate Budgetary Allocations, Not Hollow and Cynical Gestures
The Govt Takes Nirbhaya’s Name, Why Hasn’t It Provided Budgetary Backing for the Rehabilitation and Medical Care of All Rape and Acid Attack Survivors?
New Delhi, 28 February 28, 2013
The Finance Minister’s Budget speech made several references to women. But since these have not been backed by sufficient allocations in the required areas, these references appear to be mere token and hollow gestures.
The ‘Nirbhaya fund’ is the most glaring instance of this. In the case of Nirbhaya (the Delhi gang-rape braveheart), the Government had responded to the public outcry by taking over all the medical costs of Nirbhaya. The Congress party leaders had even offered a flat to her family members. The Budget was the Government’s chance to show that these were not mere ‘charity’ gestures in one single case. In fact, the Government ought to show that it owns responsibility for the safety of all women, by providing every single survivor of rape or acid attacks with state-funded rehabilitation and medical care. The 1000 crore Nirbhaya fund, a mere corpus fund rather than a Budgetary allocation, is as of now far from adequate for covering the rehabilitation and medical costs of survivors of gender violence. In Haryana, dalit rape survivors have been forced to relocate away from their village, and the Government has ignored their demands for rehabilitation costs. Acid attack survivors and grievously injured rape survivors (as in Nirbhaya’s case) often have to travel for specialized medical care such as burns units, plastic surgery, and certain operations. Such travel costs ought to be covered by the Government also. For the Government to cynically use Nirbhaya’s name for a fund that fails to offer a guarantee of support for all survivors of gender violence, is shameful. The Rs 200 crore that has been allocated to the WCD Ministry is again, inadequate as well as vague as to its purpose.
Legislations against violence faced by women (such as the Domestic Violence Act and laws against sexual violence) need to be backed by budgetary allocations. The Budget should also have announced specific allocations for safe houses and shelters for women who face domestic violence, incest, and for homeless women. There are any number of instances where girls and women facing incest are forced to continue to stay in the same house as their molester, for want of a safe shelter. Homeless women remain ever-vulnerable to violence on the streets. And the few existing shelters are so harsh in their conditions that women commonly refer to many of them as ‘women’s jails.’
One can compare these amounts (1000 crore, 200 crore) with the Budget’s statement of revenues foregone. The Budget promises to forego revenues to the tune of 68007.6 crore on corporate taxpayers (defined by the Government as prioritised tax payers) for the year 2012-13; in 2011-12 this amount was 61765.3 crore. If the Government can write off taxes to the tune of between 60-70000 crore every year for super-rich corporations as ‘incentives’, why is it that women’s safety is not seen as a similar priority by the Government?
The Finance Minister’s announcement of a public sector women’s bank is rather mystifying. Why can’t existing public sector banks offer affordable institutional loans to women? By creating a women’s bank (whose purpose is as yet unclear), are existing banks being absolved of their responsibilities to women? Like the SHGs (which leave women debtors at the mercy of the micro-finance institutions), the women-only banks might end up being projected as the highly inadequate and misplaced ‘substitute’ for institutional bank-support for women.
The Government should, in addition, have announced allocations to ensure more judges and courts (to ensure speedier trials); forensic investigations facilities all over the country, and primary health care centres in every village, specially equipped to deal with diagnostics and care for women.
Kavita Krishnan, Secretary, AIPWA
Ranveer Sena Massacre Convicts Acquitted Again
The massacre of justice in the Bathani Tola case has been repeated again. All 11 Ranveer Sena men who, in 2010, on the eve of Bihar Assembly polls, had been convicted for the Nagari massacre of 1998 have been acquitted by the Bihar High Court.
On May 11, 1998, on the eve of the Bihar Assembly polls, the Ranveer Sena attacked a crowded marketplace, killing 10 people, all but one of whom were from dalit, extremely backward and Muslim communities. After 12 long years, 11 of the attackers were convicted by a lower court. But again, following the pattern set by the Bathani Tola verdict, the convicts have been acquitted.
In Nitish Kumar's rule, this systematic protection of the Ranveer Sena killers and judicial massacre of justice is being played out repeatedly. The released convicts are now on the loose, and the villagers of Nagari, who have fought for justice in the face of all odds, including threats and inducements, now face renewed danger.
The CPI(ML) and the family members of the victims will challenge the acquittal in the Supreme Court.
"Hanging of Afzal Guru": Discussion at Kannur
An open discussion took place on 25 February at Chamber Hall, Kannur, on the "Hanging of Afzal Guru", which became an occasion to reflect on a whole range of topics from terrorism, militarization of Kashmir, draconian laws like AFSPA & UAPA, human rights, administration of justice, state terror and the death penalty. Around 150 people gathered in the hall meeting organized by Solidarity Youth Movement (Kerala), which is a socio-cultural organization with a considerable following among Muslim youth.
Apart from speakers from the host organization, representatives from the state units of NCHRO, DYFI, AIYF and the CPI(ML)Liberation State Leading Team had also been invited to present their perspectives. The meeting was welcomed by Farook Usman (Kannur Dist President of SYM) and chaired by Sadiq K, State Secretary, and Inaugurated by Muhamed Velam, State Gen Secretary of SYM. Invited guest speakers were K V Sumesh, SCM, DYFI Kerala, Advocate P Ajayakumar, AIYF Kannur Dist Secretary, Advocate N M Siddhik, SCM, NCHRO and K M Venugopalan of the SLT, CPI(ML), Kerala. Also among the speakers was K M Maqbool (State Committee Member, SYM).
The speakers demanded that terrorism investigations be accountable to democratic principles rather than communal profiling, and spoke against 'encounter deaths', draconian laws, and the death penalty. They also specifically pointed to various aspects of serious lack of accountability and transparency in the parliament attack case. The indications of a widespread of Hindutva terror were discussed, and the false framing and witch-hunt of innocent Muslim youth. Nevertheless, it seemed not an easy thing for state level representatives of the youth organizations linked to two mainstream left parties to deviate from their generally stated positions; holding them back from unequivocal condemnation of continuing arbitrariness of govts, be it at the centre or the states, in identifying, framing, conducting trials and punishing terrorists. Notwithstanding this, the overall spirit of the meeting was one of mutual cooperation in joint actions based on the areas of unity.
Bomb Attack Kills Anti-POSCO Protestors
Pro-POSCO goons in Odisha launched a bomb attack at anti-POSCO protestors, targeting the main PPSS leader Abhaya Sahoo in particular, claiming the life of 3 protesters on 2nd March.
3 left parties - CPI(ML) Liberation, CPI(ML) and SUCI (C), held a protest against the bomb attack at Bhubaneswar. The protesters marched to the Odisha Assembly and demanded 50 lakhs compensation for each of the victims, arrest of all culprits, immediate withdrawal of police from the Jagatsinghpur area, and scrapping of the POSCO agreement. The protest was led by Mahendra Parida, Radhakant Sethi, and Yudhistir Mohapatra from CPI(ML) Liberation, Shiv Ram from CPI (ML) and Rajendra Verma from SUCI (C).
Police Firing on CPI(ML) Protesters at Garhwa
On 2nd March, the police at Garhwa, Jharkhand, fired on CPI(ML) supporters protesting against the alienation of Dalit land, and state repression, killing one young CPI(ML) member.
In the village Korga, of Ramuna block in Garhwa district, 700 acres of land rightfully belonging to Dalit people of the Bhuiyan caste, had been grabbed by the feudal forces on the basis of forged papers. This dispute dates back to 1932, the High Court has ruled in favour of the Bhuiyan caste on this matter, in spite of which the feudal forces backed by police and administration continued to hold on to the land. The police had been framing false cases against the Dalits. One week before the firing, police came to the village to arrest Bhuiyan people in false cases, and the villagers chased the police away and retrieved their comrades from the clutches of the police.
On 2nd March, the police again went to Korga, beat up people, and arrested one innocent person. In protest, the villagers blockaded the National Highway 75. The police lathicharged the protesters and injured several. They then fired on the demonstration, killing 25-year-old Vikas Bhuiyan (who had been a CPI(ML) member for the past 7 years) on the spot. The villagers continued the protest and the police eventually retreated. The protest continued all night, joined by CPI(ML) leaders including State committee member Kalicharan Mehta, Sushma Mehta, and Ravindra Ram. The blockade was lifted on 3rd March at 11 am when the police agreed to the protesters' demands. The DC and SP agreed in writing to lodge an FIR against the SHO and Inspector, ensure a job and compensation for the dependents of the victim, and hold a joint meeting within a week to ensure a resolution to the land dispute.
Garhwa district remained closed on 3rd March in protest against the firing. CPI(ML) protested against the firing in every district of Jharkhand. 4000 people protested at the spot of the firing in Garhwa, defying a police force of 700.
Tribute was paid to Vikas Bhuiyan on 3rd March, where protesters observed a minute's silence and pledged to continue the struggle. CPI(ML) CC members Janardan Prasad and Rajaram Singh rushed to the spot on 3rd March from the Central Committee meeting at Gaya, and were joined by SCM Anant Prasad Gupta in a central investigation team.
The CPI(ML) held a protest march in Ranchi against the firing and the move to cut back on adivasi seats in the municipality elections.
Huge Rally in Uttarakhand
Thousands of khatta (non-revenue villages/settlements) dwellers organised under the banner of All India Kisan Mahasabha (AIKM) held a militant rally at Haldwani on 28th February to demand panchayat elections in khattas, banning completely the non-agricultural use of cultivable land as the State is on the verge of a severe land crisis, and stopping immediately the move to make eco-sensitive zones in ten km radius of State’s National Parks and reserves, and no more National Parks, reserves and protected forests. The rally was led by AIKM’s State President Comrade Purshottam Sharma, CPI(ML)’s State leader Comrade Raja Bahuguna and others.
Obituary
Comrade Bibhas Bose breathed his last on 4th March 2013 after a massive cardiac arrest in a bus while he was on his way to attend a seminar of National Safety Council, West Bengal chapter on behalf of AICCTU.
Comrade Bose, popularly known as Buroda, plunged into Naxalbari movement in 1970 and was arrested around 1973-74 when he went to organise the peasants in a village. The Congress Govt charged him with several serious cases, and later MISA charges were thrust upon him. From Howrah jail he was brought to Dum Dum central jail. Inside the jail, he valiantly resisted the oppression of the jail authorities, faced severe repression but always stood firmly besides the co-comrades and inmates.
Buroda was a member of Party’s Kolkata district committee and attended his last party meeting on 3rd March. He was Vice President of West Bengal State AICCTU and a National Working Committee member of AICCTU. He played an exemplary role in organising the transport workers, particularly the workers of Calcutta Tramways Corporation, hawkers of Birsulhat at Padyapukur, Kolkata and other unorganised workers.
Extremely popular and beloved among the entire comrades of west Bengal, Buroda was an ever smiling, fighting revolutionary and accepted enormous responsibilities unhesitatingly, given by both party and AICCTU, and was always close to the working people. His sudden death was a bolt from the blue for the comrades of West Bengal. His body is lying at Peace Haven and comrades including the General Secretary of the party will bid him final adieu on 6th March.
Adieu Comrade Chavez!
The revolutionaries world over will keep alive your struggles and dream for Socialism!!
