CPI(M) Politburo on Sunday said the two-month rule of the Narendra Modi Government had proved that it was working for the benefit of big business houses and international finance capital. “The direction of the Union Budget for 2014-15 is to provide concessions to the corporates and upper classes at the expense of the poorer sections,” said party in a statement.
The Politburo, which met here for two days, said the budget showed that the government was following a trajectory for significant privatisation of the economy through large-scale sale of public sector shares and greater reliance on public- private partnership (PPP). “The fiscal deficit will be reined in only by expenditure cuts and squeezing the people further,” it said.
Opposing the proposal to hike FDI in defence production to 49 per cent, it said that giving foreign arms companies a big stake in domestic defence production would be “detrimental to national sovereignty”.
Voicing concern over the proposal to allow FDI and enhance the role of PPP in railways, the party said that while passenger fares and freight charges were hiked before the budget, there would be periodic increases as fares and freight charges have been linked with the fuel price index.
The Politburo, which was attended by top leaders of the party, including Prakash Karat, Sitaram Yechury, Biman Basu, Pinarayi Vijayan and Tripura Chief Minister Manik Sarkar, also opposed proposals for further divestment of shares in state- run banks and the “massive disinvestment” planned in the shares of public sector enterprises.