February 7, 2024
Saugata Roy’s speech in Lok Sabha during the General Discussion and Discussion and Voting on Demands for Grants on Account on the Interim Union Budget and Interim Budget of Union Territory of Jammu and Kashmir for 2024-25, and Discussion and Voting on Supplementary Demands for Grants for 2023-24
Sir, I rise to speak on the Budget, though this… Finance Minister is not there to listen to our speech. The Finance Minister of the Pradhan Mantri. They do not think it is necessary. I will speak about you, Mr. Vaishnaw. Wait a little. The Finance Minister has given a statement which is provoking all the States. Sir, you know that Tamil Nadu has backed Kerala suit in the Supreme Court् against् the् Centre’s्move् to्stifle States. Karnataka CM is leading a march to Delhi. West Bengal Chief Minister held a dharna for two days demanding money for MNREGA. Its allocation was Rs.1,11,000 crore in 2020-21. Now it has come down to Rs.86,000 crore. So, for the poorest of the poor, there is no money. Not only that, under the Pradhan Mantri Kisan Samman Nidhi, 10 crore landholding farmer families were getting Rs.6,000 per year. There was an expectation that it would be raised to about Rs.9,000. But that has not been done. They believe that they are already coming to Government. I want to remind them that in 2004 – you were here in the Parliament – they्gave्the्slogan्‘India् Shining’.््Shri्Vajpayee preponed the election. What happened? BJP lost. Do not take the people of the country for granted. अभी सेबोल ददया दक हम जीिेंगे। It is not wise. I want to tell the Finance Minister that every day you are saying that Opposition-ruled States are not cooperating in the Railway projects. You had said that West Bengal does not seem interested in new Railway projects. I totally condemn your statement. The metro projects which were started in 2010 when Mamata Banerjee was the Railway Minister have not been finished yet. The Railway Minister is only interested in Vande Bharat trains, fast trains at high cost, denying the poor. This is my point against this Government. If you see the Budget speech – you are a very careful reader of the Budget speech – you will not find certain words. Minority is not mentioned; working class is not mentioned. Even artificial intelligence is not mentioned. In West Bengal, 21 lakh MGNREGA workers were not being given their wages for three years. Then, ultimately we went on a dharna. We met the Prime Minister. Nothing happened. The West Bengal Chief Minister has promised that she will give their money by 21st February. So, this is what the Government is all about. Now, let me come to the Budget. One of the major jobs of a Budget is to make structural reforms in the economy. The Government has lost the plot. The major structural reforms were carried out between 1991 and 1996 when Shri Manmohan Singh was the Finance Minister. Tax structures were reformed between 1996 and 1998. Between 2004 and 2014, structural reforms were done in the securities market. After that, there was none. Yes, GST was a structural reform, but GST laws disrupted existing trade structures. Insolvency and Bankruptcy Code (IBC) was a structural reform, but less than 20 per cent of the bank loans or financial credits are being recovered through IBC. So, IBC failed as a structural reform. It has been mentioned that there is nobody in the Government today who is able to think of policies which will benefit the economy in the next 10 or 20 years. There is nobody equal to Dr. Manmohan Singh. There are not even three officers in the Government including the Finance Minister who are acknowledged as world-class economists. They suspect anybody giving advice from outside. There is no competent economist in the whole Government. The Finance Minister did not mention about the rampant unemployment. She had not mentioned that 30,000 farmers and agricultural labourers had died by्suicide.्She्had्also्not्mentioned्about्women’s्low्participation्in्the् workforce. Hon. Chairperson, Sir, you may also have noticed that social sectors have received a cut. You are interested in education. The Government was supposed to spend Rs. 1,16,000 crore on education but ended up spending Rs. 1,08,000 crore. Similarly on health, of the budgeted expenditure of Rs. 88,900 crore, the Government actually spent Rs. 79,000 crore. Social sectors are being cut in this … Government. Hon. Chairperson, Sir, the core of core schemes meant for the most disadvantaged sections of society such as SCs, STs, and minorities have witnessed cuts. The budget for umbrella scheme for development of Scheduled Castes is only Rs. 6,780 crore against the Budget Estimates of Rs. 9,409 crore. For minorities who are neglected under the Government because they are busy with the Ram Mandir, the fall has been sharpest. In 2022-23, Budget Estimates pegged the expenditure at Rs. 1,810 crore. As it turns out, that year the Government actually spent Rs. 233 crore, just 13 per cent of the budgeted amount. In the current year, the BE was Rs. 610 crore but the RE is just Rs. 555 crore. All the social sectors have received big, big cuts. Hon. Chairperson, Sir, the Government is interested in high-profile, visible schemes like Awas Yojana and sanitation. Apart from that, they have done nothing. They have promised one rooftop solar scheme. It also fell short. The Government will not be able to fulfil 10 per cent of its target in rooftop solar scheme. Shrimati Supriya Sule knows very well. One man was telling us that day. There has been a 61 per cent cut for UGC. Now,् let् me् go् to् something् else.् The् Centre’s् subsidy् on् food,् fertilizer and petroleum is to increase by 7 per cent to 3.81 millions. Personal IT, only personal income tax has saved this Government more than corporate income tax. Now, let us talk about macroeconomics. Between 2014 and 2022, GDP grew्at्an्average्of्5.6्per्cent.्But्India’s्growth्rate्was्even्higher् from्2000्to्2010्at्6्per्cent.्Economists्say,्‘India’s्economy्would्need् to grow faster than current 6 to 7 per cent rate in order to absorb the growing number्of्entrants्in्the्work्area’.्What्has्Shri्Raghuram्Rajan,्a्worldclass् economist,् said?् He् said,् ‘India् is् poorest् among् BRICS् nations.् — BRICS is an acronym for Brazil, Russia, India, China and South Africa — It also has a much longer distance of travel before it reaches their level of per capita income’.्Growth has been good but it has to be set in perspective. What is the per्capita्income?्India’s्unemployment्rate्remains्high्compared्to्prepandemic levels. According to Centre for Monitoring Indian Economy (CMIE), it exceeded 10 per cent in October. Among young people aged 15-34 years, unemployment stood at 45.4 per्cent्in्2023.्Women’s्participation्in्the्labour्force्is्one्of्the्lowest् in्South्Asia.्India’s्female्labour्force,्येनारी िदक्त केबारेमेंबोलिेहैं, लेदकन कोई जवाब देनेवाला नहीं है। यहाां केवल हेमामादलनी जी हैं, िायद वह जवाब देंगी। India’s्female् labour force participation fell from 25 per cent in 2014 to 24 per cent in 2022. Women’s् participation् in् India् is् lower् than् its् regional् neighbours्् Bangladesh, Sri Lanka and Pakistan. Sir, a lot of countries are depending on research and development. They are saying they will give one lakh crore rupees. Spending has fallen in the past decade. Share of research and development under this section has dropped to 0.7 per cent of GDP. It is lower than that of any of the BRICS countries. What is it for South Korea? It is five per cent. Ours is 0.7 per cent. What is it for Israel? It is five per cent. Ours is 0.7 per cent. Mr.् Chairman,् Sir,् you् edit् a् paper.् India’s् press् freedom् ranking् is् declining.् You् know् what् happened् to् NewsClick.् India’s् Press् Freedom् Ranking has dropped from 140 in 2014 to 161 in 2023, to just above Russia. We have come down to … level. … has come to this front page. He will soon take over all power. A free press is crucial to the economy. This was written by Yamini Aiyar. She is the CEO of CPR think tank. When somebody comes from outside to invest, he will find about press freedom… What? But this is true, Sir. I am saying about Putin. Sir, invisible person is doing all these mischiefs. सब अदृश्य िदक्त चारों िरफ चल रही है। Adhrushya Shakti, as Supriya ji correctly्pointed.् You know of an economist Pranab Bardhan. He is in Berkeley. He is one of् the् reputed् economists् of् the् world.् He् said् India’s् data् may् be् overstating्the्country’s्performance.्इसमेंभी घपला है। Sir, Raghuram Rajan said another thing. Alongside an emphasis on building physical capital, there has not been enough attention paid to creating human् capital.् This् was् a् worry् given् India’s् unemployment् crisis.्We् are् flying blind. It was said by Shri Raghuram Rajan. Udasi ji, you know about him. Is it without credible data on jobs? Malnutrition levels in many parts of India, in Odisha particularly in Kalahandi and in Bolangir, are higher than many countries in Sub-Saharan Africa which was unacceptable for a fast-growing economy. एक िरफ बोलिेहैंदक हम पूरी ददुनया की िीसरी रकैं पर पहुांच जाएगां े, लेदकन बलाांगीर-कालाहाांडी मेंसब-सहारन अफ्रीका सेभी ज्यादा कुपोषण ज्यादा है।… This was said by Raghuram Rajan ji, not by me. It is quoted in the Economist which is more reputed magazine. Sir, The Economist of November, 13, 2023 said sluggish investment is holding India back… Investment as a fraction of GDP which exceeded 40 per cent in 2008 in UPA is now 34 per cent …I will give it just after my speech. I have papers with me. The money is not going into factories, researches or other parts of private business. About 36.5 per cent of banks’ sanctioned funding is for roads and bridges and another 20 per cent is for power. For chemicals, the sanctioned funding is only 2.3 per cent. The chemical sector is an index of a country’s development. It has dropped from 3.4 per cent. Foreign portfolio investment only recently turned positive after more than two years of outflows and Foreign Direct Investment fell by 16 per cent to 71 billion dollars in March, 31, 2023. As per CMIE, new announcements have crashed to a 20- year low reflecting insufficient animal spirits in the economy. The Indian business climate remains difficult. The touted tax changes have too many tires and too much discretion is in the hands of feared revenue officials. The playing field is not levelled, with a few local giants perceived to have gamed the system of 120 billion dollar worth of projects scheduled to be completed by March, 2023. This was the statement of Shri Eswar Prasad of Cornell University. The future is a fraught exercise. The country’s infrastructure still has many gaps in supporting a vibrant manufacturing sector. The education system is not equipping young people with the vocational skills needed for a modern economy. Job growth has been weak with little net employment in the manufacturing and service sectors. This will lead to risk of social instability. सर, क्या आपनेबैल बजाई हैऔर क्या मेरा टाइम खत्म हो गया है? सर, िो कमनट और िेिीकजए। मैंिो कमनट मेंअपनी बात खत्म कर िूग सर, आप कशि सेना के लीडर हैं, आप तो टाइम िेिेंगे। A few politically well-connected conglomerates have accounted for a significant growth, leading to a concentration of economic power. The unfinished reform agenda is taking a backseat. A well-functioning legal system, a free Press etc., are keys for maintaining investors’ confidence. Each of these pillars have been eroded. This Government is prickly about criticism. This Government is switching into triumphalist mood rather than pushing forward the uneconomic agenda. Sir, the biggest beneficiaries of India’s stock market boom are the political insiders. The best connected with all is Shri Gautam Adani who has a relationship with Modi I am quoting from The Economist Billionaire families like Adanis and Ambanis are Modi’s partners in State building. But they are globally competitive. India has failed to capitalise on rising labour cost in China. Bangladesh was more entrepreneurial and has higher GDP per capita. India may benefit from diversification from China driven by national security consideration. : If I have said anything unparliamentary, I am ready to hold my ears and let that be expunged but I shall not take this … from the … In the World Bank’s Human Capital Index, which measures country’s education and health outcomes on a scale of zero to one, India’s score is 0.49 before Nepal and Kenya. Both are poorer countries. China scored 0.65 on a par with Chile and Slovakia which have higher GDP per capita. India has hundreds of millions of under-skilled youngsters. In 2019, less than half of India’s ten-year olds could read a simple story, compared to 80 per cent of Chinese children and 96 per cent of American children. India’s path is neither that of China nor that of the West. India might become the forerunner, rather gloomy model for populous low-income countries managed without a powerful, effective Government apparatus or globally competitive manufacturing centre. India’s growth has been debt-fuelled. In the current moment there is a natural fit between the “promoter” model of capitalism personified by Adani and Modi’s populism. This is said by Ashoka Mody, one noted man and an economist. He has written a book called “India is Broken”. सर, इसकलए मैंकह रहा ह ां कक कनममला सीतारमण जी का बजट लोगों को साांत्िना नहीं िेरहा है, लोगों की आकथमक कस्थकत को आगेनहीं बिा रहा है। केिल यह बोलना कक हम तीसरेनांबर पर आ जाएगां , े लेककन आधेलोग गरीबी मेंरहेंगे, यह कोई सॉल्यूशन नहीं है। इसकलए मैंइस बजट का किरोध करता ह ां।
