Union Budget: CPI(M) accuses Centre of favouring corporates; flags decline in expenditure

In a statement issued on Monday, the CPI(M) Polit Bureau dubbed the Union Budget 2021-22 presented by Union Finance Minister Nirmala Sitharaman as a "colossal betrayal of people". According to the party, the Centre is promoting a few business houses at the expense of increasing distress and misery for the working class. It contended that the "destruction" of employment, livelihoods and incomes and the collapse of demand required much more expenditure. Calling upon the people to take to the streets in protest against this budget, CPI(M) demanded immediate cash transfers, free food and universal employment guarantee programmes.

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Here are the objections raised by CPI(M):

• Expenditure has declined in real terms: Central Government’s total expenditure of 34.8 lakh crores in 2021-22 is identical in nominal terms to that in 2020-21
• The increase in the fiscal deficit to GDP ratio is owing to the substantial loss of revenue
• The transfer of resources to states and Union Territories has gone down from last year's revised estimates by over Rs 40,000 crore
• Expenditure in key Ministries such as Agriculture, Education, Social Welfare, Women and Child Development, Scientific Departments, Urban Development, Pensions and Disability Affairs was lower than the budgeted amount in 2020-21
• The budget allocation for Health in 2021-22 is Rs.8000 crore less than last year's revised estimates
• The Union government wants to privatize even profit-making public sector companies
• Objecting to the increase in FDI in insurance, the party has likened it to the mockery of 'Atmanirbharta' (self-reliance) slogan 

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Union Budget 2021-22

Earlier in the day, Sitharaman presented the first digital Union Budget which laid emphasis on 6 pillars- health and well-being, physical and financial capital and infrastructure, inclusive development for aspirational India, reinvirogating human capital, innovation and Research and Development and minimum government and maximum governance. To begin with, the outlay for the health sector was increased by 137% including the allocation of Rs.35,000 crore for COVID-19 vaccine. There has been a 34.5% increase in the capital budget expenditure as compared to 2020-21. 

Fixing the disinvestment target for 2021-22 at Rs.1.75 lakh crore, Sitharaman disclosed that every Public Sector Undertakings in all but 4 strategic sectors will be privatised. In 2021-22, the fiscal deficit is estimated to be 6.8% of the GDP with the aim to achieve a fiscal deficit level below 4.5% of the GDP by 2025-26. On the direct taxation front, relief has been provided to senior citizens above 75 years of age besides changes in mechanisms for reducing disputes and simplifying settlements. For instance, the National Faceless Income Tax Appellate Tribunal Centre will be established. Moreover, the Centre has opted for Customs Duty rationalization and introduced the Agriculture Infrastructure and Development Cess on a small number of items to aid farmers. 

Read: Budget 2021: From 6 Pillars To Direct & Indirect Tax, Everything FM Sitharaman Announced