As the Lok Sabha took up supplementary demand of grants, the opposition MPs asked the central government to clear the dues of the states, and allot more money for the employment generation scheme, MNREGA.
The second supplementary budget for 2021-22 was taken up for discussion and voting in Lok Sabha. It proposes an incremental cash outgo of Rs 2.99 lakh crore, an increase of 8.6 per cent over the budget estimate. The 2021-22 budget passed in February had estimated an expenditure of Rs 34.83 lakh crore for the year.
The supplementary budget includes an allocation of Rs 22,039 crore towards MGNREGA and Rs 40,170 crore for decentralized procurement of food grains for additional allocation under Pradhan Mantri Garib Kalyan Anna Yojana.
Congress MP Shashi Tharoor hit out at the government over the latter’s handling of the economy.
“The foundations of the economy have been laid low ever since demonetisation. Key sectors of the economy have been impacted by the pandemic but the government is usual combination of high rhetoric, grand ambition, exaggerated numbers, and unrealistic targets, all diluted with underwhelming allocations to crucial sectors,” he said.
Tharoor said with the second supplementary demand of grants, it was unlikely that the government will be able to stick to its claim of a 9.5 per cent fiscal budget deficit, which is an increase from 6 per cent last year. “The current cash outgo clearly shows that the government will be unable to stick to its own claim, the targets of capping the fiscal deficit at 6.5 per cent of GDP. They revised it to 6.8 per cent.”
The Treasury benches, however, were all praise for the government's handling of the economy and the help rendered during the pandemic. “The budget 2021-22 embodies in itself three elements, which we need to acknowledge and appreciate – first is, hope; second is vigour; and the third is confidence. It embodies hope which we carried among ourselves during the toughest times. the central government and all the state governments under the leadership of the prime minister and the respective chief ministers have worked very closely combating COVID-19. The element of confidence, reflected by the budget, is also there that the economy will revive and reset,“ BJP MP Aparajita Sarangi said.
DMK MP and former minister Dayanidhi Maran asked the Centre for restoration of an amount of Rs3,554.88 crore which was due to Tamil Nadu. “When floods hit Gujarat in 2017, Rs 500 crore was released within three days. Tamil Nadu is also a part of India. I appreciate the way Gujarat got the funds, we should also get similar funds. It will be very appreciable,” he said.
Maran urged the finance minister to stress on the due of Rs 4,943 crore of GST pending for the states. “The states are losing their share with the new GST formula. I will urge upon the finance minister to release the funds at the earliest.”
Maran charged that the Insolvency and Bankruptcy Code was being misused. “It was said it solve the crises of the NPAs and also address the disease. If we see, a major fraud is happening in the disguise of the IBC. A large amount of public money, the banks’ money, is being written off. The finance minister is aware of the haircuts the banks are taking. Bhushan Power got it. JSW Steel and Tata Steel got 50 per cent haircut. In respect of Alok Industries, CoC accepted a bid of Reliance Industries where the haircut was 83 per cent. ABG Shipyard got 80 per cent haircut. Monnet Ispat got 70 per cent haircut. So many companies are going for bankruptcy and insolvency.”
TMC MP Saugata Roy also targeted the government on the state of economy. “The finance minister mentioned about why the economy is improving. She said that it is because GST and direct tax collection is rising. Why is it rising?
It is rising due to inflation. The cost of same thing, which used to be sold for Rs 10, has become Rs 12. So, you take GST from it and you will get more money. What is happening is that inflation is driving their so-called revival path. This will ultimately land the country in a very difficult situation,” Roy said.
BJD MP Bhartruhari Mahtab raised the issue of delinking of eight centrally sponsored schemes from central support. “Abolition of normal Central assistance and a steep increase in state’s share in centrally sponsored schemes have imposed severe financial burden on the states. For example, under Pradhan Mantri Gram Sadak Yojana, the sharing has now become 60:40.
Similarly, the sharing pattern of National Health Mission and Pradhan Mantri Awas Yojana has been revised. States like Odisha have to contribute 40 per cent share instead of 25 per cent. Such change in sharing pattern of the centrally sponsored schemes has cast a huge additional financial burden on the states.”
NCP MP Supriya Sule also questioned the delay in payment of GST. She said when they were in government before 2014, the opposition used to call them as ‘tax terrorism government’.
“I remember those days when people used to attack us and we used to wonder: 'Are we, really, a tax terrorism government?'”
“But the way demands are made now and the way people are raided is unbelievable. Even some people are put behind the bars because of non-payment of GST. What is the truth of this? Are we putting people in jail? Putting people in jail is not going to resolve this situation,” she said.
Sule asked if they are really collecting GST, why the states are not getting it. “Why is this GST Tax terrorism going on? They were against us and claimed that we were doing tax terrorism whereas they are going through the same legacy just in a different form.”
