The Hindu : National : "Continuity of reform mission"

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Tuesday, Mar 01, 2005

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National

"Continuity of reform mission"

By Our Staff Correspondent

NEW DELHI, FEB. 28. The All-India Trade Union Congress (AITUC) has described the Union budget as "indicative of continuity of reform mission launched by the National Democratic Alliance Government."

In a statement here today, the AITUC general secretary, Gurudas Dasgupta, said the working class expected much from the budget. Though there has been improvement in the expenditure in the social sector, there are ominous signs also. "The capital accounts expenditure has been reduced by Rs. 20,000 crores which will affect growth and development. There is a nominal increase in budgetary allocation for agriculture but no mention in the budget for the welfare of the unorganised sector labour and the Employment Guarantee Scheme is of only limited nature, a diluted version of what was approved by the advisory council of the United Progressive Alliance.''

While fringe benefits have been taxed which will impose burden on the workers, the corporate sector has been given 3 per cent tax relief. Large-scale reduction of custom duties will surely affect indigenous industries and lead to displacement of labour and loss of lakhs of jobs, Mr. Dasgupta said.

Bank mergers

The AITUC has also opposed the move to reform the banking system through mergers, disinvestment and increase in Foreign Direct Investment in the private banking. "The Union Finance Minister's move to unearth black money by imposing tax on withdrawals from banks is ridiculous. This will only impose burden on the common people.''

The Centre of Indian Trade Unions has described the budget as low on allocation of resources, without any attempt to correct the dilutions in the Employment Guarantee Bill in keeping with the commitments in the National Common Minimum Programme.

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