The CPI(M) wants an increase in open subsidies. It has flayed Union finance minister P Chidambaram for announcing subsidy cuts while he has doled out huge amounts of indirect subsidies to the rich in the present budget.
In an editorial in the CPI(M) organ, Peoples Democracy, the party has said that instead of directing his efforts at garnering more revenue, the finance minister sets out to attack the livelihood of the vast majority of Indian people who barely manage to make both ends meet.
According to the editorial, Chidambaram has estimated the amount of subsidy to be of Rs 1,85,000 crore and the amount of spent on open subsidies like subsidies for food, fertiliser and exports promotion constitute only Rs 17,130 crore.
The editorial says that the finance minister has talked about slashing open subsidies which is the only amount of inadequate safety net that the Indian people receive.
The announcement, it says, is made to fufill the IMFs condition of reducing the fiscal deficit. While the fiscal deficit can be reduced by two ways, by cutting governments expenditure or by generating more revenue, Chidambaram has chosen the former instead of taking an equal interest in increasing revenue, the article says.
In fact, the finance minister has given tax concessions to the rich to the tune of Rs 15,000 crore and outstanding loans to the tune of Rs 40,000 crore to corporate houses have been written off, it adds.
Add to this the four to 11 billion dollars estimated to be siphoned off every year by unscrupulous businessmen through over-invoicing of imports and under-invoicing of exports. And, on the top of all this is the fact that the richest of the rural rich get away without paying a single paisa as tax, it says.
Meanwhile, the CPI(M) central committee completed its deliberations on the current political situation and noted that the party would fight against corruption in high places and the UF governments pro-rich economic policies.
The central committee also intensly debated the issue of the stand the party should take vis-a-vis the Congress and decided that while there was no question of joining hands with the Congress, there was a need for strengthening the secular forces.
One central committee member, however, cautioned that the present courtship with the Congress should not lead to a marriage.
