Amit Mitra Critiques Union Budget as a Catastrophe for Ordinary Citizens

New Delhi, Feb 1 (NationPress) Dr Amit Mitra, Principal Chief Advisor to the Chief Minister and Finance Department of West Bengal, condemned the Union Budget on Saturday, calling it “a catastrophe for the ordinary citizens”.

He asserted that there is nothing for the common people in this budget, stating to IANS, “It (Union Budget) has slashed everything. Social services were reduced by 16 percent. Housing funding decreased by 4.38 percent. Welfare for scheduled castes and tribes saw a drop of over 3 percent. Social services and welfare, crucial for the common populace, were cut by 5 percent. Interestingly, even food subsidies were trimmed by 1 percent.”

“Moreover, there is no support for the youth, women, or farmers. Currently, youth unemployment stands at an alarming 46 percent. Of these, 30 percent are graduates. According to CMIE, approximately 37 million individuals were unemployed between October and December,” the Principal Chief Advisor claimed.

Regarding the allowance of 100 percent FDI in insurance, Mitra remarked, “This presents a challenge to all public sector companies, including LIC and several other insurance firms, as well as Indian private sector companies. With 100 percent equity, these foreign firms are stepping in. When our state requested a reduction of GST on insurance, including life insurance, from 18 percent to 0 percent, the central government denied it and postponed the request. This raises a question: is there a conspiratorial aspect here where foreign direct investors are permitted 100 percent equity while the GST remains at 18 percent for the common people? Who stands to gain from this?”

On the manufacturing sector, he indicated that the survey has explicitly stated a reduction in growth rates.

“Manufacturing constitutes merely 15 percent of our GDP, with a commitment to elevate it to 25 percent. What provisions in the budget will help attain that 25 percent target set by Mr. Modi? Consequently, how can higher growth be achieved? Growth is evidently declining and cautious in its forecasts. So, what has the budget accomplished for the common populace? It has persistently cut,” Mitra expressed.

Commenting on the newly announced tax exemption threshold, the Principal Chief Advisor to the West Bengal Chief Minister stated, “Taxes from the 7 lakh threshold have been raised to 12 lakh. While those earning up to 12 lakh will not incur taxes, it’s essential to remember that inflation is increasing and there’s nothing in the budget to address inflation.”

Elaborating on the new tax exemption limit, he noted, “Only 8 crore individuals pay taxes. Even if a portion of these individuals benefits marginally, it will be nullified by inflation. This implies that the real gain is 0. This is a clever trick that the budget employs.”

Criticizing the budget further, he added, “What measures have been taken to combat inflation? To maintain the fiscal deficit at 4.4 percent, the central government will need to borrow nearly Rs 15 lakh crore. Consequently, the nation’s debt will continue to escalate. My conclusion is that there is nothing for the common populace, nothing for the youth, merely unemployment, no substantial support for women, just empty rhetoric, and no significant aid for farmers apart from some platitudes.”

Mitra also alleged the presence of a deep-rooted conspiracy, as suggested by many experts on Saturday.

“By inviting 100 percent equity foreign direct investment in insurance without reducing the GST tax on insurance, is there a correlation between the two? Does this point to some international lobby operating within this government?” he questioned.