Special Assistance to Bengal a ‘bluff’: Mamata Banerjee

West Bengal Chief Minister Ms Mamata Banerjee on Monday dismissed as a “bluff” the special assistance proposed by the Central Government for West Bengal and demanded the Centre stop taking away funds towards repayment of loans.

Finance Minister Arun Jaitley had proposed assistance for Bihar and West Bengal in the 2015 Union Budget.

“Developmental projects need money. Money is being taken away by the Central Government. We are not asking the Centre to give money, we are asking to stop taking away money from us,” Ms Banerjee said after inaugurating a state-run burial ground at Topsia in East Kolkata.

“The so called ‘package’ is a bluff. We used to get 61.8 percent. That is being raised to 62 percent,” the West Bengal Chief Minister said.

State Finance Minister Dr Amit Mitra had earlier said the total grant to Bengal in 2014 was Rs 4,05,582 Crore and in 2015, it is Rs 3,28,277 Crore, a reduction of 20 percent.

“The truth is, if all the grants are calculated together, in 2014, 61.88 percent was given, in 2015, the share is 62 percent,” Dr Mitra had said on Saturday.

Dr Amit Mitra slams Jaitley over ‘anti-people’ Union Budget

West Bengal Finance Minister Dr Amit Mitra on Saturday slammed Union Finance Minister Arun Jaitley saying there was a dichotomy in the latter’s distribution of central resources to the state governments.

According to Dr Mitra, while one the hand, Jaitley is making a big public display of giving more resources to the state governments through a higher rate of tax devolution, he is carefully concealing the fact that he is also taking away a lot from them. “When you asked me about my reactions to the 14th finance commission recommendations on the higher rate of tax devolution on Friday, I reserved my comments till I studied the budget details.

“Today, after studying the same, it is clear to me that while on the one hand the Union government is making a big public display of offering additional resources to the state governments through a higher rate of tax devolution, on the other it has negated those additional resources by curtailing allocation under major heads of the different centrally sponsored schemes for the state governments,” Dr Mitra told mediapersons at Nabanna on Saturday.

According to Dr Mitra, a 22.14% cut under Sarva Siksha Avijan, a 50% reduction under the Integrated Child Development Scheme (ICDS) and a 12% cutback under the National Livelihood Mission (NLM) are greatest examples of what has been given with one hand and taken away by the other.

“One figure is enough to prove this. The total central grant to the state governments was 4.05 lakh crore for 2014-15, which has come down to 3.28 lakh crore for 2015-16,. It is completely an anti-people budget,” he said.

Commenting on the Union Finance Minister’s announcement of a special assistance package for Bengal and Bihar, Dr Mitra said he is not quite sure whether this special package will come at all.

“The Union Finance Minister said that this special assistance package will come on the lines of what had been earlier announced for Andhra Pradesh. Now, Andhra Pradesh got a financial package of 850 crore. This a paltry sum since the Union government straightaway takes out 28,000 crore from the Bengal exchequer for servicing its debt,” Dr Mitra said.

“The West Bengal Chief Minister will surely take up the matter when she meets Prime Minister Narendra Modi,” he said.

Trinamool’s reaction to Union Budget 2015

Professor Saugata Roy and Derek O’Brien briefed the media in Parliament on Trinamool’s reaction to Union Budget 2015:

  • This Union Budget 2015 is not for the people, not for the poor and not for the middle class
  • Lot of talk on giving more to the States. This is untrue. Last year, gross output to States was 61.88%. This year it is 62%
  • There is a saying in Bengali: Machher tele Machh Bhaja (Frying fish in fish oil). Only hollow talk on Federalism
  • There is a lot of big talk on infrastructure and social development. Big promises… Where is the action plan?
  • Lot of projects – BRGF, Modernisation of police, National Mission on Food Procurement, National e-governance plan and 15 other Schemes – delinked from Central funding
  • They talk of Look East and give ‘small change’. Same package as Andhra (AP got Rs 850 Cr)… 1 lakh Crore interest burden paid by West Bengal to Centre
  • Service Tax has been increased. Middle class will be hurt. Prices of essential commodities will go up.
  • 100 Days’ Work Scheme – remains unchanged. Minor increase in allocation from Rs 33k Cr to Rs 34K Cr. Rs 5000 Cr comes with a caveat

 

WB Finance Minister reacts to Union Budget 2015:

  • There is a talk of increasing the share of devolution from 32% to 42%
  • The truth is, if all the grants all calculated together, in 2014 61.88% was given, in 2015 the share is 62%
  • Allocation for “Sarba Sikha Abhiyan” has been slashed by 22.14%
  • Allocation for ICDS has been deducted by 50%. National Livelihood Mission decreased by 12%
  • Total grant to State in 2014 was Rs 4,05,582 Crore and in this year Rs 3,28,277 Crore, a reduction of 20%
  • Allocation to the Pradhan Mantri Gram Sarak Yojona, Primary Education Sector, Health Sector not been increased
  • On behalf of the West Bengal Government, I must say this is an ‘anti people’ Budget
  • The 14 Finance Commission predicted an allocation of 62.75% to the states. Central Government has not even able to reach target
  • There is no relief to the tax payers for the individual payers
  • There is a talk of a package in the lines of Andhra Pradesh. We do not know the amount of package or any details

Sukhendu Sekhar Roy speaks on the Union Budget | Transcript

Thank you, Mr. Vice-Chairman, Sir, for giving me this opportunity.  Sir, according to astrologers, Saturn falls in the line of Mars and enters in the star sign Libra around the time the Budget 2014-15 was placed. Astrological forecast predicts a very tough time ahead in such combination of planetary situations. But I am not sure whether this astrological prediction has any effect on this Budget. Shani ki jo antdesh hai, wah is Budget ke upar padegi ya nahi, mujhe malum nahi. Woh toh aage dekha jayega.

But even before this Budget was placed, the Government hiked the prices of diesel, petrol, railway passenger fares and, particularly, the freight, resulting into abrupt rise in the prices of essential commodities, particularly, the vegetables throughout the country.

Sir, when I look at this Budget, I find it to be an extension of the previous Budget. Possibly, the Babus of North Block were waiting for change of guards, and only after 16th of May when the results of last Lok Sabha elections were announced, they started doing some denting and painting on the interim Budget placed in February, and this is how the interim Budget has turned to be an ad hoc Budget for the coming eight months.

Sir, everyone must agree with the hon. Finance Minister. Everyone must agree with the hon. Finance Minister that nothing can be achieved or done within forty-five days. It is true. Because of the sluggish economic situation, it is very difficult. Yet, everyone had expected that keeping in view the slogan, sabka saath, sabka vikas, there will be a new roadmap. But I am constrained to say that this Budget any new vision or dimension for the hungry millions of our country. When I say so, I quickly refer to the few quick figures from the Millennium Development Goals Report, 2014 released the Secretary-General of the United Nations very recently, wherein, it is stated that one-third of the world’s poor live in India alone, who cannot earn 1.25 dollar a day, that is to say people who cannot earn Rs 75 a day, incidentally they constitute one-third of our population. This is a situation that one-third of our population is poorest of the poor of the world. This Report also says that India is having the highest number of under-five deaths in the world with 1.4 million children are dying on an average per year before reaching their fifth birthday. Not only that, India has an estimated 50,000 maternal deaths per year which is the highest in the world. The Report further says that nearly 60 per cent of the Indians practise open defecation. Sir, this being an alarming situation, this Budget ought to have put special emphasis, considering these development indexes, on extending all support to all those who need it most.

But, there is not even a ray of hope for one-third population of our country that figured in the UN Report. This Budget has not reflected any hopes or aspirations for that one-third population of our country.

Sir, this is the situation and I feel ashamed and shocked to know that while one-third of our population is not in a position to even maintain their animal existence, what to speak of living with human dignity, the Boston Consulting Group Report, 2014 says that India shall be the seventh wealthiest nation by 2018 in terms of the number of millionaires and billionaires. So, side by side, yeh andhera bhi hain, yeh ujala bhi hain. Andhera kiske liye aur ujala kiske liye, ispe Budget mein charcha karna zaroori thi, magar humein afsos hain ki ispe Budget mein koi charcha nahi hai.

Sir, it establishes beyond doubt that the so-called economic reforms, being perpetuated since the early ’90s, has immensely benefited the richest people of this country and not the poorest of the poor.

Sir, It is common knowledge that as the income gaps between the rich and the poor widen, a sub-nation emerged within the nation, leading to economic and social mutinies, which is writ large on every nook and corner of this country, and none of the governments has addressed this problem seriously.

Sir, from this Budget it is clear that the mandarins of the North Block have failed to look at the writings on the wall. Whenever there is a Budget, there is an in-built story of growth, and this Budget is no exception to that story of growth. There are beautiful depictions about how it is visualized and how it is to be achieved. But, when I put the question to myself as to whether growth by itself can create an economically unified nation, pat comes the reply – no! Unless the entire character of development planning itself is changed, providing for more balance between rural and urban areas of the country as a whole, and treating it as an integral and economic hinterland, no inclusive growth can be achieved, particularly when the BPL census undertaken by the Ministry of Rural Development indicates and projects that half of India’s rural population live below the Poverty Line. And yet, this Budget maintains the status quo.

Sir, the hon. Finance Minister has set a target of reducing the fiscal deficit from 4.1 per cent to 3 per cent in 2017. But the Budget lacks details on revenue and expenditure measures to lower the deficit. This Budget has attributed only one line, at page 3 of the Budget Speech, to the problem of black money, without mentioning anything about the action or sanction to be initiated against countries unwilling to disclose the Indian accounts, and also against the 498 Indian entities operating from different tax havens. The fate of Rs. 750 crores loan default scam involving the Life Insurance Corporation, to the benefit of a private company, is also not known. It reminds me of a similar Life Insurance Corporation scam in the early ‘50s, involving a Kolkata businessman, because of which the then Finance Minister, Shri T.T. Krishnamachari, had to resign.

I want a clarification from the hon. Finance Minister. What is the fate of that Rs.750 crore scam of the LIC? Sir, I have identified from this book ‘Budget at a Glance’, 25 schemes for which Rs.100 crores have been allocated. There are fifteen other schemes and a paltry sum of Rs.20 crores to Rs.90 crores has been allocated. So, altogether, there are forty schemes in this Budget and the allocation for them ranges between Rs.20 crores to Rs.100 crores. I am just referring to a few of them like Beti Bachao, Beti Padhao, Madrasa modernization, tribal welfare and ghat development. I am not sure whether ghats include bathing ghats, ferry ghats and burning ghats too. But ghat development is a new thing that this Budget has highlighted. It is very good. But for these forty schemes, only Rs.20 crores to Rs.100 crores have been allocated. I would request someone from the Government to visit West Bengal and ascertain from our beloved leader Miss Mamata Banerjee, who is having a Government in the most debt-ridden State of India, as to

 

how she has allocated Rs.1,000 crores for Kanyashree scheme which is identical to this Beti Bachao, Beti Padhao scheme, but initiated much earlier. This House will be happy to know that this

Kanyashree scheme initiated by Miss Mamata Banerjee has got the appreciation of the United Nations and the United Nations has taken it up as a role model, and in the coming weeks in London there will be a summit to discuss on the pros and cons of this

Kanyashree scheme and how to implement this scheme in other States of the world. Sir, this is the way a Government should function. But here we have found that only a paltry sum of Rs.100 crores has been allocated for Beti Bachao, Beti Padhao. Sir, similarly, Rs.100 crores have been allocated for “Start Up Companies” for rural youth and I consider this is a cruel joke. This is a cruel joke to 55 crore youths of our country. Only Rs.100 crores for “Start Up Companies” for the youth! Sir, if forty Central schemes which have an allocation of Rs.100 crore each is divided among 29 States and 7 Union Territories, what will be the actual amount to be received by the States and Union Territories? If it is equally divided, then each State or Union Territory will get only Rs.2.77 crore for Beti Bachao, Beti Padhao, or Start Up Companies for youth, for Tribal Welfare, for Ghat Development and Madrasa Development. This is horrible, I must say. The Government must come out with a clarification on the matrix behind such laughable allocation. Sir, there are such other schemes too. I am quickly referring to two or three schemes. One, rupees hundred crore for soil health card for kisans. The Government is so sympathetic to kisans that only Rs. 100 crore has been allocated for soil health card for kisans. Only Rs.50 crore are provided for blue revolution. What is that blue revolution? We have had white revolution and green revolution. What is that blue revolution? That is development of inland fisheries notwithstanding the prospect of export of prawns and other Indian fish to foreign markets. Then, Sir, Rs.100 crore are provided for Madrasa modernization. How many Madrasas are there in the country? Thousands of Madrasas are there. What will be the share of each Madrasa if Rs.100 crore is divided among 29 States and 7 Union Territories?

And, they call this minority welfare! Next comes, Rs. 200 crore for national heritage cities. Which are the cities identified as national heritage cities? What is the criterion? Is it only for sites of pilgrimage or cities of rich cultural heritage with long historical background? This needs a proper clarification.

Sir, Rs. 100 crore have been allocated for ‘Van Bandhu Kalyan Yojana’. What a tribute to our brethren living in the forest zone of the country, the tribal people! Sir, for the Small and Medium Enterprises, nothing has been allocated but an assurance has been given that there will be a Committee to evaluate it, and, thereafter, appropriate steps will be taken. Whenever Government wants to bypass something, the Government constitutes a committee or a commission to put the issue into cold storage. How many committees are running there in this country? How many corporations are running there in this country? Commissions after commissions, and, committees after committees.

Punchhi Commission was set up on the Centre-State relations. It submitted its recommendations in 2010. We are in the middle of 2014. Three and a half years have elapsed. The recommendations of Punchhi Commission are yet to be accepted by the Government. The previous Government did not initiate any action. I do not know whether the new Government will do anything. But because now there is a person like Shri Arun Jaitley at the helm of affairs, I sincerely believe that some action will be taken in this regard so that the recommendations of the Punchhi Commission are accepted.

Sir, the BJP’s manifesto released on 7th of April categorically ruled out and disallowed the genetically modified foods without scientific evaluation. But what happened on 18th July, just five days back. It is reported that the Environment Ministry has given a green signal for field trials of GM rice, mustard, cotton, chickpea and brinjals. My question is: what change has taken place between 7th of April and 18th of July? This House needs a clarification. Are you listening? What is your Swadeshi Jagran Manch saying in this regard? Kindly go through the Organizer paper; your paper, I believe. What has the Swadeshi Jagran Manch stated? They have made a hue and cry against this field trial of GM rice, etc.

Sir, Rs. 1,500 crore have been allocated for National Ganga Plan. When you say, ‘national’, you must keep in mind that Ganga does not emanate from Varanasi or ends at Varanasi. Ganga emanates at Gomukh in Uttarakhand, and, after flowing through vast tracks of Uttar Pradesh and Bihar, it merges with Bay of Bengal at Sagar Island in West Bengal. I would like to know whether the Government, while undertaking the National Ganga Plan, is aware of the fact that the Gangotri glacier near Gomukh, which is the source of Ganga, is receding at the rate of 19 metres per year, and, according to NASA, the total recession of the Gangotri glacier is 1,147 metre in the past 61 years. This is the estimation of NASA. Sir, global warming, of course, is one of the major reasons but rampant deforestation from Haridwar to Gangotri glacier, and, construction of a number of dams and bridges from upstream to downstream have created a situation that may lead to disappearance of Ganga, as the original flow of Saraswati river has disappeared.

If the Government is serious about the National Ganga Plan, it should have more scientific and more ecological approach to the scheme than the emotional or religious passion being shown in some corners. Sir, the hon. Prime Minister, Shri Narendrabhai Modi, has time and again said that he has himself experienced poverty since his childhood. The commitment of poverty elimination was also reflected in the President’s Speech delivered on June 9, 2014. But, in this Budget, only rupees one thousand crores have been enhanced in respect of MNREGA compared to last year’s allocation, although MNREGA needs a much higher allocation to be a genuine guarantor of employment to the poor. When the country is confronted with severe drought, only one thousand crore rupees have been allocated for irrigation schemes. While the Centrally-sponsored schemes have been re-structured, the Union Government’s assistance to the States has been drastically slashed from nearly Rs. 40,000 crores to under Rs. 6,000 crores. There is no mention about granting fiscal autonomy to the States and the demand of the States, including the BJP-ruled States, that there should be 50-50 sharing of Central tax revenue between Centre and States or, for that matter, inclusion of cess and surcharges for devolution to the States. Sir, there must be a dispute redressal mechanism at the Central level to prevent the Finance Ministers of different States of India from visiting the corridors of North Block or the Planning Commission with begging bowls. And, I appeal to the Government to consider whether the Finance Commission can be given a permanent status by changing our Constitution. Sir, there

 

is also no assurance of providing adequate compensation to the States for the revenue loss that will be incurred due to interest on GST, although rupees nine thousand crores were allocated in the last year’s Budget. This Budget is also conspicuously silent about implementation of General Anti Avoidance Rule, popularly known as GAAR, which is being deferred from time to time to the benefit of the corporates. Sir, after this thing, the slogan of ‘cooperative federalism’, when I look at this Budget, I find the commitment made in the President’s Address — and here I quote only one line from the Address of the President, “High priority will be accorded to bring Eastern region of the country at par with the Western region in terms of physical and social infrastructure.” It is almost absent. Only one industrial corridor, that is, Amritsar to Kolkata industrial corridor, which was taken up by the previous Government, has been announced which will benefit not only the Eastern region but also some other States of Northern India also. That has been announced. If the Government is still interested in its ‘Look East’ policy, then I would suggest that the Amritsar-Kolkata industrial corridor must be extended up to Siliguri which is the gateway of Sikkim, Bhutan and seven North-Eastern States. Sir, no assurance has been given for granting adequate financial assistance to West Bengal in particular and Eastern States of Bihar, Odisha and Jharkhand despite the fact that the interest payments are increasing owing to debt stress of West Bengal inherited from the previous Government.

I demand for a moratorium on all arrears and debts of West Bengal inherited from the past.

Sir, this apart, neither Horticulture University nor a textile cluster has been sanctioned for West Bengal in this Budget. So many horticulture universities and textile clusters in the country have been announced. In spite of the fact that West Bengal is the largest producer of fruits and vegetables in the country and has tremendous potential for raw silk and cotton, no textile cluster or horticulture university has been sanctioned.

It is a perennial problem with the jute industry. Among the seven jute-growing States of India, West Bengal has the largest number of jute growers apart from four lakh labourers engaged in sixty-two jute mills situated in West Bengal. Instead of patronising the jute industry in the same manner as the sugar industry has been given relief, the compulsory provision of jute packaging of foodgrains and sugar has been diluted substantially endangering the future of jute industry. Similar is the situation with the tea industry. In spite of the mandatory provisions in the Tea Act, 1952, the Tea Board, which is a Central Government organisation, has neglected and failed to come to the rescue of the tea plantation workers and extend assistance in improving their sub-human conditions.

A mere slogan of cooperative federalism will not do. When you talk about partnership and participatory democracy, the Government must recognise that India has no other identity than ‘a Union of States’ as enshrined in the very first Article of the Constitution of India. And this Article of the Constitution of India is an article of faith to all the Indians living in this country.

Sir, India is a federation. The Government must also recognise that the States are closer to the ground and, therefore, more effective in delivering public services like food, health, education, roads, transport, etc. Even the fields like agriculture, industry, irrigation, power generation and supply, etc., are the core areas where the State-sponsored schemes and policies depending upon diverse socio-economic and geological considerations run successfully than the Centrally-sponsored schemes. The Government must adhere to the recommendations of the Sarkaria Commission and the Punchhi Commission on the Centre-State Relations in this regard. Once it is done, the States would receive an appropriate increase in their shares of the divisive pool to be recommended by the Fourteenth finance Commission.

I would urge upon the hon. Finance Minister to look into this aspect with all seriousness. This would also end the Planning Commission’s role as a fiscal agent for devolution of resources at its whims and fancies.

Sir, there is a popular belief that after being routed in the last Lok Sabha election in West Bengal, the BJP led Central Government has resorted to political vendetta against the State. I am sorry to say this.

Sir, I do not know whether this Budget is a sanjivini or vishalya karani, but to the people of West Bengal, this Budget is a jar full of hemlock and as it is said in Sanskirt: Madhutishthati jihvagre hridayatu halahalan. Bahut sari baat yahaan pe kahin gayi hai. Lekin hum agar apne rajya ke taraf dekhenge toh yeh halahal hai, zaroor hai.

Of course, my party does not hold this two-month old Government responsible for all evils of 67 years of Indian independence. No. It cannot be. No one can hold this two-month old Government for all these evils. But this Budget, as it appears, is essentially a Budget for corporate honchos, crony capitalists, FDI, FII and PPPs. It is not meant for ensuring economic justice and equality to the larger section of Indian society.

Sir, millions of our countrymen sincerely hoped and believed that there would be parivartan or a sea change by their introducing well-orchestrated slogan of ‘Minimum Government and Maximum Governance.”

Now, it appears FDI, FDI, FDI everywhere. FDI in Civil Aviation, FDI in Railways, FDI in Real Estate, FDI in Defence, FDI in Agriculture, FDI in banking and FDI in insurance. Hamara jal, thal, antriksh FDI ke zimme chala gaya? Kya hum desh aur janta ko bhi FDI ke paas girvi rakh denge, yeh sawal aaj paida ho gaya hai. Kya aaj sarkar chalane ke liye bhi hum FDI ki madad leni padegi? Yeh sawal paida hota hai ki aaj desh mein kya ho raha hai?

Sir, I know that the hon. Finance Minister’s hands are tied in the given situation to present this Budget. But he has assured that the steps highlighted in the Budget are only the beginning. If it is a beginning, I do not know whether it is the beginning of the end or not. But it is said, “Morning shows the day” but not necessarly the manner in which the Budget has shown no way out.

Sir, I would like to conclude here with a few words from Great Indian Poet Gurudev Rabindranath Tagore, although I have three minutes to conclude. I can’t translate the Bengali couplets of Gurudev but I will make an attempt “Those you trample under foot, drag you down; Further backward they recede, the less you advance; Your brethren you have  treated with disrespect; You must share with them all, their ignominy.” This is what Rabindranath Tagore said 100 years ago against the social, political and economic exploitation of the British rulers. I am appealing to the new rulers of this country to adhere to the caution given by Poet Gurudev Rabindranath Tagore. With these words, I conclude. Thank you.