Tax Rural Rich, Says Bjp

The Bharatiya Janata Party has asked the government to tax rich farmers, tighten its purse-strings, remove the well-to-do from the public distribution system's ambit and cut subsidies in the forthcoming budget.

The party, the main ruling coalition partner at the Centre, has assured the government of its full support for tough measures to bring the economy back on track.

In a communication to Union finance minister Yashwant Sinha, the party has asked him to tax farmers who are cultivating cash crops and those who own farmhouses.

Rich farmers could be asked to support the government's rural development schemes either by paying tax or through contributions in exchange for concessions. Alternatively, the government could float rural development bonds for rich farmers, the party has proposed.

 

There would be some resistance from Opposition parties to the suggestions as any new tax proposal was bound to be resisted initially, party vice-president Jana Krishnamurthy told Business Standard yesterday. He added that the government should not worry too much on this count.

Tipped to take over as the party chief in May, Krishnamurthy expressed concern over the fiscal deterioration both at the Central and state levels. He said unless the government took hard decisions, it would be difficult to prevent the economy from deteriorating further.

"The time has come for the government to ponder whether subsidies should be confined to those who are really needy. People who can buy from the open market should not depend on subsidy and thereby help the government to reduce fiscal deficit," he said.

The BJP leader, however, has asked the government to first tighten its belt to make its people easily accept its hard measures. As for example, the government should drastically reduce its expenditure in terms of establishment cost, he stressed. He also urged the government to take the allies into confidence before taking any drastic step. "The mind of the allies must be prepared. They should be convinced that the steps taken by the government were the much needed ones." He said he was confident that the government would take all steps to allay the fears of the allies if any and that the allies would support the government. "We trust our allies. We are sure they will have an overall view of the Indian economy and the need for meeting the challenge. We will not be having any problems with our allies on the budget," he stressed.