Budget 2022: RSS-linked body SJM offers some praise, flags some concerns

Lauds 30% crypto tax, push for domestic investment; laments little emphasis on middle class, small-scale industry

While lauding many of the provisions made in Budget 2022-23 that will contribute to India’s economic progress, groups affiliated to the Rashtriya Swayamsevak Sangh (RSS) feel the budget could have gone further in some other areas–-specifically, tax breaks in personal income tax and a bigger employment push.

Swadeshi Jagaran Manch co-convenor Ashwani Mahajan said the government could have afforded an income tax cut to the middle class. “The budget itself says collections on account of Goods and Services Tax (GST) are unprecedented.  All other tax collections are up too, as per the Finance Minister herself. I feel a tax cut could have been given,” Mahajan said.

He also said: "it is good to see that there is not much mention of FDI in the finance minister's speech and the government has taken much-needed steps for rationalising the policies for domestic investors." He added that the ‘second part of the budget’ which deals with tariffs and taxes is overtly protectionist and helps domestic industry, promoting swadeshi, in line with the thinking in his organisation.”We welcome the higher tariffs on imports,” he said.

However, Mahajan said that while the Union Budget 2022-23 was good for growth, it ‘lacks push on employment.'

“Swadeshi Jagran Manch expresses its concerns for very limited efforts towards promotion of small-scale industry and creation of employment in the country,” the RSS body said. It added that there was “an urgent need” to promote self-employment in the country, for which central as well as state governments need to push entrepreneurship development programmes, infuse more funds and seed capital for small businesses “which can motivate the youth to start their own enterprises”.

Mahajan noted that it was the SJM which voiced the demand for a complete ban on crypto currency. The 30 per cent tax on it is the first step towards the outlawing of this phenomenon, he said.

The Vishwa Hindu Parishad (VHP) had its own reasons for disappointment with the budget. It wondered why an allocation had been made at all to the Ministry for Minority Affairs, arguing that the creation of this department itself was a legacy of the Congress I governments which made the budget a tool for minority  appeasement by allocating public funds to specific religious groups, although India was a secular republic. VHP leader Vinod Bansal, who is also a spokesman for VHP, said in 2008-09 then Finance Minister P Chidambaram doubled the allocations for the Ministry of Minority Affairs from Rs 500 crore to Rs 1000 crore. A special allocation was made to central paramilitary forces to encourage minority recruitment. In 2009, Finance Minister Pranab Mukherjee announced a 15-point plan for minorities and made financial allocations for it as well.

The VHP says public money should not be spent on the Ministry of Minority Affairs which should be wound up along with the Minorities Commission. All Indians should be the beneficiaries of budgetary allocations, not specific minorities.  In this respect, every budget is a missed opportunity, the VHP feels.

The RSS itself has praised many elements in the budget specifically the announcement of the ‘crypto’ tax. Senior RSS functionary Ram Madhav said  the budget was a ‘digital’ one, as it committed itself to rolling out  5G and taxing digital assets.

"The budget has also announced support to the states by way of the availability of advances to the tune of Rs 1 lakh crore that will help states in racing ahead with the Centre," RSS leader Ram Madhav said.

"Overcoming the temptation of a 'popular' budget in election season, the finance minister comes out with a well-balanced budget strongly needed for post-Covid recovery giving a much-needed boost to infrastructure, healthcare and MSME sectors," he said.