Govt's economic stimulus merely transfer of misappropriated RBI reserves to corporates: CPI(M)

The CPI(M) on Friday dubbed the government's post-budget, economic stimulus in the form of Rs 1.45-lakh crore tax break to corporates as an act of transferring the RBI reserves of Rs 1.76 lakh crore to India Inc after misappropriating it from the Central bank.

In a statement, the party also asserted that the government's bid to undo the Budget provisions cannot reverse the economic recession as "people do not have the money to buy what may be produced".

In the biggest reduction in 28 years, the government on Friday slashed corporate tax by almost 10 percentage points as it looked to pull the economy out of a six-year low growth and a 45-year high unemployment rate by reviving private investments with a Rs 1.45-lakh crore tax break.

Two-and-a-half-months after presenting her maiden Budget, hailed as "development-friendly" and "future-oriented", Finance Minister Nirmala Sitharaman announced cutting the corporate tax rate to 25.17 per cent to bring them at par with other Asian countries such as China and South Korea.

The CPM, however, said, "This RSS-BJP government through an ordinance has amended the Income Tax Act giving huge concessions to corporates and superrich to the tune of a whopping Rs. 1.45 lakh crores. This comes over and above the Rs 70,000 crore of concessions to the realty an exports sectors recently."
Asserting that India's current economic recession in India has been caused by the lack of demand, the CPI(M) said, "These efforts reversing the budget announcements cannot reverse the economic recession as people simply do not have the money to buy what may be produced."
"The budget announcement of an enhanced surcharge on capital gains has now been withdrawn providing a massive benefit to foreign portfolio investors. This comes on the eve of Modi's visit to the US and his brazen attempt to woo portfolio investors from the US and the rest of the world," it said