Reforms abandoned, says Venkaiah Naidu

NEW DELHI: The Opposition on Monday criticised the Union budget in Parliament saying that it adopted the approach of the 1960s and was rhetorical not substantive.

Opening the debate, Bharatiya Janata Party leader Venkaiah Naidu accused Finance Minister Pranab Mukherjee of completely abandoning reforms while the third speaker of the day and Communist Party of India (Marxist) leader Sitaram Yechury said allocations in many critical areas were too inadequate to take into account the concerns of the common man. In between, Congress member Abhishek Singhvi charged Mr. Naidu with a penchant for alliteration which was not based on facts.

Pointing out that the National Democratic Alliance government had bequeathed a strong economy with sound macroeconomic fundamentals, Mr. Naidu said the government was going to borrow at the rate of Rs.1,100 crore every day of the year to finance the budget. The bulk of the massive expenditure increase was due to interest payments, defence, subsidies, salaries and pensions which were detrimental to the health of the nation. "The big ticket reforms are missing and there is nothing for the short term. The budget is unrealistic. It is a clear case of economic mismanagement. The deficit is mind-boggling."

Mr. Singhvi felt that the BJP member was raising trivial issues but admitted to a mismatch between the wholesale price index and the consumer price index. The reason, he felt, was hoarding by middlemen. The government would take action, including legal, against the hoarders, he said.

Mr. Yechury pointed out that assets of top business houses had trebled and the number of Indian billionaires had gone up by more than five times. "May such prosperity be for all." But the fact was that 77 per cent of the population lived on less than Rs.20 per day. This is too inadequate to take into account the concerns of the common man. Nearly two-thirds of farmers continued to be outside the ambit of institutional credit while the food security Act reduces the quantity and increased the price. This gross negligence of the farm sector was taking place at a time when there were serious concerns of an impending drought due to a weakened monsoon.

Disinvestment

While appreciating the Finance Minister for not becoming the victim of fiscal fundamentalism on the issue of fiscal prudence, Mr. Yechury questioned the manner in which fiscal deficit will be met. The needle of suspicion pointed towards disinvestments.

Referring to the government's stand that disinvestments would make people the owner of public enterprises, he said only 2.5 per cent of the population has had a stake in the stock market. "Don't create a myth that people will be owners. Last year, the total money raised from the market was Rs.36,915.71 crores whereas this year only Rs.10,072 crores. That is state of the market. You will sell the shares for a song."