Left parties on Friday demanded immediate withdrawal of the hike in petro-product prices and cuts in food and fertiliser subsidy proposed in the Budget, asking the people to launch protests across the country.
Besides seeking rescinding of petro price hike by Rs 2.50 per litre and the subsidy cuts, the CPI(M) also demanded withdrawal of the indirect tax proposals saying these would fuel inflation and adversely affect the people.
The CPI(M), which, along with other Left parties is organising a march to Parliament on these issues next month, also asked its units to launch protests against the "anti-people" Budget proposals.
Senior party leader Sitaram Yechury said the Left was holding talks with all "secular opposition parties like RJD, SP, BSP, TDP, AIADMK and BJD to work out a joint action plan on the Budget proposals.
Asked why the BJP was being left out, he said it would be for them to join this protest. "We are already coordinating efforts in Parliament".
Describing the budget as "anti-people", CPI leader D Raja said it would push up inflation and cause further increase in fuel prices, that would have a cascading effect on the prices of all essential commodities.
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He said the Finance Minister himself admitted a revenue loss of Rs 26,000 crore in direct tax collections, which reflects "nothing but concessions given to big business houses and the corporates".
Raja said the government was continuing with pursuing "neo-liberal policies of the free market economy" and bent upon disinvesting public sector enterprises for resource mobilisation. Agriculture and rural development has been allocated only "token amount", the CPI leader said.
Noting that it would "neither stimulate growth nor bring down inflation", the CPI(M) Politburo said the Budget was "premised upon a flawed strategy" to meet the deficit by hiking indirect taxes across the board, especially on diesel and petrol, which would hit the common people.
"In contrast, direct taxes on the affluent sections have been reduced. This anti-people strategy will further fuel inflation in the backdrop of an already high food inflation rate of 20 per cent," it said in a statement.
Observing that a revenue loss of Rs 26,000 crore was being estimated for 2010-11 due to direct tax concessions doled out to high-income earners as well as real estate developers, hoteliers and other commercial establishments, it said this comes in the backdrop of nearly Rs 80,000 crore tax concessions given to corporates in 2009-10.
The party said it was "shocking" that food subsidy was slashed by over Rs 400 crore despite the commitment to enact a food security legislation and fertiliser subsidy cut by a massive Rs 3,000 crore from what was spent last year.
These moves "come at a time when inflation is galloping and agricultural output growth has become negative," it said and attacked the government for low allocation in agriculture sector and its disinvestment plans.