Uttarakhand State committee of the Communist Party of India (Marxist) has said that the debut Budget of the BJP Government expresses deep commitment to continue the trajectory of reforms of benefiting foreign and domestic capital by emphasising on larger FDI flows and enlarged avenues for PPP projects.
Fiscal consolidation is sought to be effected through contraction of public expenditures and not by increasing revenues through taxing the rich. Thus it is a recipe for further enriching the rich and impoverishing the poor.
The Budget proposes to reduce direct tax incurring a revenue loss of Rs 22,200 crore while increases indirect taxes by Rs 7,525 crore which would obviously have regressive impact on the common people. The revenue generation
proposed in the budget is high on expectations since there is no significant increase in tax rates and the revised estimates in revenues for the last two years fell short of the budget estimates which eventually prompted further cut in expenditures.
The budget proposes drastic cut in central plan outlay in agriculture and allied sectors, rural development and social services and women and child development. There is no increase in allocation in MGNREGA, Indira Awas Yojna rather in real terms it has declined.