The Finance Minister in his reply to the debate assured the private sector that the Centre's increased borrowing of about Rs 4 lakh crore this fiscal would not crowd out the private sector from its funding needs. Another important assurance that should gladden the corporate sector was that the Government had initiated discussion with various Ministries for identifying the public sector undertakings (PSUs) the part of Government equity of which can be put on sale as part of its disinvestment programme to meet their fund requirements.

It is obvious that the Finance Minister who talked of holding discussion with stakeholders to plan disinvestment does not believe that PSU workers too are stakeholders' representing the country's working people. During the pre-Budget discussions, he had assured that he would again meet CTUOs after presenting the Budget. He has not cared to do it so far whereas he was quick in meeting the organisations of Business and Industry to assure them that he would pursue economic reforms and PSU disinvestment. CTUOs are bound to take note of it.

The Budget has also largely ignored the ILO Director General's warning that “measures to rekindle growth must start at home, through fiscal and monetary policies to arrest falling demand. Only through the combined effect of domestic policies will trade resume its role.” Ministry sources say that more financial resources are being provided to help SMEs to overcome crisis effects and that the Budget has pledged to create 1.2 crore jobs this fiscal but it has not indicated how and where.

The other important ILO warning which the Budget has refused to attend to is regarding the erosion of the value of Pension Funds under the impact of global financial crisis. “Private pension funds in the OECD have, on average, lost more than 20 per cent of their value in 2008.” Similar figures are reported from Latin America, ILO says adding, “This will negatively affect the pension entitlements of people who are within a decade of retirement.” The loss in pension savings is on an average equivalent to 2.6 years in contributions.

CPI MP and AITUC general secretary Gurudas Dasgupta showed serious concern about the Budget failing to take into consideration the impending threat of drought in many parts of the country to drastic shortage of rainfall and its likely impact on the prices of essential commodities. He said in Parliament that this was a serious omission in the Budget of the Finance Minister Pranab Mukherjee who happens to be one of the senior most political leaders. He wondered how could Mr Mukherjee ignore the likely impact on foodgrain prices.

Dasgupta was skeptic about the Government fulfilling its promise of generating 12 million jobs in view of the present economic scenario of the country or achieving four per cent agricultural growth.

The All India Kisan Sabha (AIKS) said that delayed monsoons have hit the agrarian sector and there were indications of drought conditions in mnay parts of the country. The suicides by farmers continue unabated, touching an average of 17,000 a year. But the Finance Minister has turned a blind eye to these realities and failed to provide adequate resources necessary to stimulate growth. It also said that the farmers are going to be further pushed into indebtedness. The seven per cent interest is too high and opposed to the Swaminathan recommendation of four per cent, AIKS says.

Meanwhile, economic experts have shown keen interest in the Budget 2009-10 proposals and the Government's prospective outlook as put forth in the Economic Survey.

Dr Girish Mishra, for instance, warns that so long as Indian economy remains subjected to FIIs and hot money wondering in search of quick profits, it will continue to experience violent ups and downs. He quotes Economic Survey to underline its anti-worker outlook and support to the policy of 'hire and fire' and increased workweek to 60 hours from 48 hours and so on. He says that inspite of continuously increasing economic growth rate, India ranks 132nd from the point of human development. As many as 125 nations have more per capita GDP and 126 have greater life expectancy at birth.

It is needless to add that this exposes the claim that mere high rates of economic growth are sufficient to lift people above poverty line. The infatuation with economic growth rate must be given up and development objective needs to be pursued,” says Dr Mishra.

Emeritus Professor at the National Institute of Public Finance and Policy Sudipto Mundle has a word of appreciation for the Budget. The mandate for inclusive growth will be met primarily through incremental expenditure allocated to rural inclusiveness programmes like the NREGA, implementation of the proposed National Food Security Act, National rural Health Mission, rural infrastructure schemes under Bharat Nirman and so on, he says. However, he expresses serious reservations also saying: “The implications of this large deficit is the main risk arising from the current Budget.” According to him, the total national fiscal deficit may reach around 10.5 per cent of the GDP when the State governments total borrowing programme is also taken into account.

Professor of Economics at JNU Jayati Ghosh has said that given the various tax and other measures in this Budget that disproportionately benefit one particular group of companies dealing in petroleum and petrochemicals, one could be forgiven for thinking that “this is not a Budget for the aam aadmi so much as for some vishesh aadmi or group.”

Jayati Ghosh says that the Government will have to spend if it wants to do what it has promised. “But that is difficult because it has tied its own hands by continuing with the supposedly temporary tax cuts and other incentives to corporates that were introduced in the wake of global crisis. So the chances are that when the need to increase social spending becomes pressing, the Government will engage in blatant sleight of hand by selling off shares in public enterprises to finance such spending.”

This is sad, she says, not only because it smells of subterfuge, it will deprive the state of resources from its own profit-making enterprises and prevent the public sector undertakings from serving the needs of society as a whole rather than a privileged few. (IPA)