Congress leaders urged Pranab Mukherjee to spare populist social schemes from cuts and raise the income tax slabs to woo the middle class.
The Congress leaders urged finance minister Pranab Mukherjee to spare “populist” social schemes from cuts and raise the income tax slabs to woo the middle class, even as he attempted to seek their support for tougher budgetary measures.
Financial strains do call for tough measures, but not at the cost of hurting the aam aadmi, some 40 Congress leaders told Mukherjee as part of his pre-budget consultations with party men here last week. The leaders, representing various cells and departments at the Congress headquarters did not buy tougher fiscal measures and sought sops for middle class, citing the party’s drubbing in the Mumbai civic elections.
The Government sources, however, say the coming Union budget is right time to curb subsidies and apply cuts to expenditure on social programmes since there are no immediate elections to worry about and the general elections are still 26 months away. The leaders also demanded bank interest rate restructuring, further emphasis on keeping down food inflation, focus on industrial growth and more allocation to education.
Leaders, who attended the meeting, said the finance minister kept emphasising on maintaining the growth rate, which he said was necessary for social sector spending and to generate employment. They asked Mukherjee to make the tax exemption to salaried class main feature of his budget, to entice which is spewing venom against the party over corruption and host other issues.
To stem the middle class anger, the party also a free insurance cover- medical, life and unemployment to all tax payers “This will encourage middle class as well as small time traders to pay taxes. Currently there is no incentive to pay taxes. The move would also dispel, impression of tax payers that their money ends up to fill coffers of babus and politicians,” said a Congress leader, who was part of consultations.
At the meeting, Mukherjee, gave a detailed briefing about the economic situation in the context of global economy and the constraints on fiscal resources. Rajya Sabha MP Subbirami Reddy is stated to have demanded restructuring of interest rates to boost industry. “We demanded priority to industrial growth and focus on banking sector. It will have direct bearing on the employment situation”, said Reddy. He also suggested that interest rates should be reduced to encourage industrial growth.
Congress’ minority cell in-charge Imran Kidwai demanded an added thrust on Prime Minister’s 15-point minority welfare programme. He demanded an increase in the number of scholarships to minority students.
A party general secretary batted for flagship programmes and even briefed Mukherjee party’s grandiose plans over next two years to involve ground level Congress workers to monitor these programmes. He asked for a full Budgetary support to Mahatma Gandhi National Rural Employment Guarantee Act, National Social Assistance Programme, Swarnajayanti Gram Swarozgar Yojana, Indira Awaas Yojana (IAY) and National Rural Livelihood Mission. Incidentally, all these schemes are failing to meet even 50% target.
The leaders who attended the meeting included Ahmad Patel, political secretary to Congress president Sonia Gandhi, corporate affairs minister Veerappa Moily, AICC media cell Chairman Janardan Dwivedi, members of parliament Sanjay Nirupam and Girija Vyas, CWC member Shakeel Ahmed, minority affairs department chairperson Imran Kidwai and other leaders.
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