Left feels poverty will increase

The Left parties labelled the interim budget a “pre-poll declaration” by the Congress, Left parties on Monday said the government had not taken any step to check the impact of the global recession on the Indian economy by increasing public expenditure.

While CPI(M) Politburo member Sitaram Yechury said the interim budget was nothing but a “pejorative” (lengthy and pompous) document and government had in fact lowered the expenditure on major social structure schemes, CPI leaders Gurudas Dasgupta and D Raja called it a “lollipop” budget meant for the coming elections.

Comparing the 2008-09 budget allocations with this year’s figures, Yechury said the funds earmarked for rural employment guarantee scheme declined by Rs6,650 crore, food subsidy by Rs1,328 crore, rural development by Rs5,176 crore and Jawaharlal Nehru Urban Renewal Mission by Rs1,735 crore. Such slashing of spending in these and infrastructural sectors would not only lead to lower purchasing power of the commoners but further increase job losses, he said.

Yechury said what we are seeing is a contraction of government expenditure, whereas the only way to fight global recession was to increase it. He said capital plan expenditure had also declined by Rs4,500 crore, which would lead to further lowering of economic activity.

Referring to government’s claim of higher foodgrain production and procurement, Yechury asked if this was true, why did it not increase the state allocation for foodgrains.