Finance Minister Nirmala Sitharaman has delivered an "Atma Barbaad" (self destructive) budget, said Congress leader and former Karnataka chief minister Siddaramaiah.
“The pandemic has been devastating as farmers are suffering due to their crops not fetching a fair price and the industries collapsing for want of market. But the central Budget gives no direction to salvage the situation,” he said, adding that the finance minister had not heeded to the world economists who had suggested that money should directly reach the hands of people for the revival of economy.
Alleging that the agri cess was a ploy to turn the common man against the farmer, Siddaramaiah said, "The Centre is trying to mobilise resources through agri cess instead of taxes. A cess has been imposed on almost everything from petrol, diesel, fertilisers, coal, palm oil, apples to liquor, which will lead to inflation, which is bound to affect everyone including the farmer. But the general perception will be that inflation is due to agri cess and the people will blame the farmer for it. This is a ploy of the government.”
He said that the budget does not mention how much cess will be collected or how it will be spent. “There is no specific detail if they plan to build warehouses or spend on irrigation or for any other purpose,” the Congress leader said.
Siddaramaiah further said: “A long pending demand of the farmers is low interest loans. But the budget has no mention of it though this could have paved the way for infrastructure development in agriculture sector. The government did not bother to waive farm loans given by nationalised banks, which could have bailed out the distressed farmer."
Poll-bound states of West Bengal, Assam, Tamil Nadu and Kerala have got higher budget allocations. Karnataka has been neglected though the finance minister has got elected from our state, alleged Siddaramaiah.
"Perhaps, we must go to polls every year to avail higher allocations," mocked the former chief minister who also alleged that the Modi government was all set to privatise the railway stations, ports and airports.
"Modi is hoping to sell the assets of the country to businessmen like Adani and Ambani. The country will not only lose its assets, the trend will end the reservation system.
Siddaramaiah opposed the privatisation of power and divestment in insurance sector, saying it would harm the interest of common man. "The farmers will be deprived of free power, the domestic users and industries will be forced to pay higher tariff decided by private players. Divestment in insurance is an alarming development as we have a weak social security system. The retired and aged persons will bear the brunt of it.”
Govt seeking farmers' help for a bail out: HDK
“The Centre on one hand is trying to project farmers as anti-national. But on the other, it is hoping for the same farm sector to bail them out of the economic crisis,” alleged former chief minister H.D. Kumaraswamy.
He said the budget is silent on how the agri cess will be utilised to develop the agriculture sector. “The government claims this is a budget that will build ‘Atmanirbhar Bharat’. But with so much inflation, hike in diesel and petrol prices can we achieve self reliance?,” he asked.
Expressing anguish over the fiscal deficit of 6.8 per cent (2022) and the borrowings of 12 lakh crore next year, Kumaraswamy called it a grave situation. "The government will try to overcome fiscal deficit by mobilising resources from the banking system which will further aggravate the financial situation. The Centre has not clarified why it needs such huge borrowings too. The Centre has made it a point to make big announcements with little action on the ground. The finance minister had announced the states would get their tax share of 41 per cent, but it has still not reached the states. Instead of announcing that Rs 35,000 crore has been set aside for Covid vaccines, the Centre should ensure free vaccines to all of the 136 crore population," added Kumaraswamy.
