The Hindu : Budget imposes huge debt, tax burden: CPI(M)

Online edition of India's National Newspaper
Sunday, Jan 25, 2004

Kerala

Kerala

Budget imposes huge debt, tax burden: CPI(M)

By Our Special Correspondent

THIRUVANANTHAPURAM, JAN. 24. The CPI(M) State secretariat has said that the budget proposals for 2004-05 would impose a huge debt and tax burden on the people of the State.

In its reaction to the budget proposals, the CPI(M) State secretariat said in a statement here today that the budget proposals had effected a sizable cut in development and social welfare sectors.

The proposals clearly prove that the debt burden under the UDF rule had been going up steeply. The State's debt burden had gone up by more than Rs. 12,000 crores from Rs. 23,919 crores, while the revenue deficit had also not been contained. The budget figures showing a revenue deficit of Rs. 3,364 crores was an all-time record, the statement said.

The party questioned the Finance Minister's claim that the market borrowings the Government had resorted to were being spent for development activities. The State had witnessed cut in Plan size to the extent of 30 to 40 per cent during successive years.

The budget papers show that it would not be possible to achieve half of the Plan outlay of Rs. 4,350 crores. The Government was also losing thousands of crores of rupees as grant due from the Central Government on account of the repeated cut in Plan size, the statement said and expressed concern at the fall in capital expenditure.

The Rs. 495 crores ARM measures the Minister has proposed would impose a burden on the people. The Government, while announcing schemes to save the agriculture sector, has had not qualms in impose agriculture income tax.

The party alleged that the Antony Government had imposed an additional tax burden of Rs. 1,500 crores during the last three budgets as against the Rs. 237 crores tax burden imposed by the LDF Government between 1996-2001.

The CPI(M) said that the Finance Minister had given a raw deal to the unemployed, farm workers, and others.

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