Oppn rejects finance minister's solutions to revive economy

Both the right wing Bharatiya Janata Party (BJP) and left Communist Party of India-Marxist (CPM) have rejected P Chidambaram’s prescription of cutting planned expenditure in order to achieve fiscal targets.

Reacting on interim budget, they said it will affect both industry and agriculture. However, they have appreciated “One rank, One pension” for ex-servicemen. “The UPA government has been able to match its fiscal targets only by drastically cutting its planned expenditure. It means the government has reduced its investments in the economy,” said the BJP. “He juggled his numbers to come up with a fiscal deficit of 4.6 per cent for the year 2013-14. He rolled over fuel subsidies worth Rs 35,000 crore to next fiscal to arrive at a better looking fiscal numbers,” the party alleged.

“Unfortunately, there is no clarity and direction on manufacturing and the agriculture sectors,” the party said. It pointed out that both the sectors provide employment.
CPM leader Sitaram Yechury termed it the “contraction of expenditure” and predicted a hard time ahead. He said this method of consolidating the fiscal deficit will lead to increase in unemployment and inflation in wholesale prices. He attacked tax on luxury items and said the subsidies have increased only marginally and in real terms it will come out to be negative.

He criticised the finance minister for not providing data on the tax which could not be collected by the government.