New Delhi, Feb 1 (UNI) Senior Congress leader and former Prime Minister P Chidambaram on Monday said that Union Finance Minister Nirmala Sitharaman has deceived the working class, migrants, farmers, industrial units that had been closed down permanently, and those who had lost their jobs, both regular and informal, and are still looking for jobs.
Addressing a press conference, he said, 'She deceived those who were listening to her speech, especially the MPs, who had no clue that she imposed cesses on a large number of products including petroleum and diesel: Rs 2.50 on petrol per litre and Rs 4.00 on diesel per litre is a cruel blow to the average citizen, including the farmers.'
Claiming that it was a monumental let down like never before, the Congress leader further said that it was a 'vengeful act' against the thousands of farmers who took out the longest tractor rally in history.
'It was also a cruel blow to federalism because the states do not get a share of the revenue from cesses", he added.
Taking a dig at the Government, he said the Budget has failed on two most important factors -Defence and Healthcare.
Talking about the defence sector, Mr Chidambaram said, 'She did not mention Defence at all, as if the Chinese had vacated occupied Indian territory. She did not mention that Defence expenditure in 2021-22 will see no rise. It is flat at Rs 3,47,088 crore, almost the same as the Rs 3,43,822 crore in the current year.'
Dismantling the claim that there has been a 137 percent increase in health spending, the Congress leader said that a one-time investment in COVID-19 vaccine programme cannot be deemed an investment into the healthcare infrastructure.
"If you take that one-time expense out, there is very little increase in the health budget,' he added.
He also accused the Government that the Finance Minister has also included the allocations to the Department of Water and Sanitation. 'The allocations for Health were Rs 72,934 in 2020-21 and Rs 79,602 crore in 2021-22 means the increase is practically nil in given inflation,' he added.
Mentioning about the page 10 of the Budget at a Glance, Mr Chidambarm said that the two numbers are Rs 82,445 crore and Rs 74,602 crore — which means a reduction in expenditure from the level in the current year. 'What kind of additional health infrastructure can be built with this parsimonious allocation? the government has miserably failed the people of this country,' he added.
Referring to the fiscal deficit, he said that fiscal numbers show that the fiscal situation is in a mess. The Revenue Deficit (7.5 percent) and the Fiscal Deficit (9.5 percent) in the current year have exceeded every prediction, including that of the Government.
Mr Chidambaram further said that the record of this government on disinvestment was poor. The Government has also assumed that tax revenues will increase by 15 per cent — another questionable assumption. The RD (5.1 percent) and FD (6.8 percent) numbers for 2021-22 will send alarm signals to the rest of the world, especially the investors and international lenders.
He also mentioned that there was no cut in GST rates whereas the mess of multiple rates remains and the saga of protectionism continued. 'Customs duties have been increased on a number of items in the wrong belief that a stiffer dose of protectionism will help Indian industry?' the former Finance Minister asked.
Mr Chidambaram also said, 'As expected, the FM has paid special attention to election-bound states. She announced large capital outlays for Kerala, Tamil Nadu, West Bengal and Assam'.
People are not fools and they know that the proposals were only outlays and the actual expenditure will happen only after the schemes have been approved and over a period of several years depending upon the pace of implementation, he added.
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