CPI-M condemns move to transfer RBI's reserves to government

The Communist Party of India-Marxist (CPI-M) on Tuesday condemned the manner in which the Reserve Bank of India's (RBI) reserves were being transferred to the government and profit-making public sector navaratnas like ONGC were 'fleeced' in the past to meet Modi government's 'extravagant expenditure.'

In a statement, party politburo said the government has "forced" the RBI to part with a whopping Rs 1.76 lakh crore, alleging that it was "an act of desperation".

It said the RBI is monitoring authority and lender of the last resort and its financial stability is insurance to protect the economy from monetary or financial instability or crisis generated globally.

 

"The politburo of Communist Party of India (Marxist) strongly disapproves of the manner in which the Reserve Bank of India's reserves are being sought to be utilised to meet the fiscal deficit," the party said.

"Similarly, in the past, profit-making public sector navaratnas like ONGC had been fleeced to meet the Modi government's extravagant expenditure like those on propaganda," the party said.

It alleged that the Modi Government has "siphoned off" 99.99 per cent of the RBI's net profits every year in the past five years.

"On top of this comes the current transfer. The surplus transfer termed as 'dividend' to the government is almost double the previous record of Rs 65,896 crore. The economic slowdown is also compounding the problems of the navaratnas," the statement added.

The party said that unemployment rate had crossed nine per cent, "the highest in decades."

"Such transfer of surplus to meet the government's expenditure and to contain the burgeoning fiscal deficit is hurting both the economy and the livelihood status of our working people," it said.

Referring to Prime Minister Narendra Modi's remarks that "wealth creators" should be respected, the party said: "Wealth can be created only when a value is generated".

"The vast army of working people today have no work to generate value. All sections -- farmers, workers, MSMEs, youth, and women workers are being badly hurt," the statement said.

The party called all its units in the country to organise protests against "merciless assault on our economy and people's livelihood".