Communist Party Manifesto for Elections on Indian Economy

March 28, 2009 · Author: · Category: business 

We have carefully studid the Manifesto of the Communist Party for the forthcoming general elections. Here is there vision for steering the Indian Economy,

  • Support for Enhanced State Intervention -  Scrapping the FRBM (Fiscal Responsibility and Budget Management) Act, raising borrowing limits to allow for higher public expenditure;  Increase annual Plan expenditure amounting to 10% of GDP from the current 5%; and  Aggressive expansion by Central Public Sector Units (CPSU) utilizing their vast cash reserves.
  • Immediate Relief Measures -  Specific relief packages for SMEs in textiles and garments, gems & jewelry, leather, software and IT, etc;  Moratorium on job cuts; Preventing wage and pay cuts burden of cost cutting to be borne by profit earners; Income tax relief for salaried employees, pensioners and senior citizens;  Massive increase in public investment in agriculture and irrigation; and Protection against price crashes of crops
  • Taxation and Resource Mobilization – This additional spending will be funded via: Restoring Long-Term Capital Gains Tax and increasing Securities Transaction Tax;  Launch a drive to unearth black money, especially those stashed in Swiss Banks; Increase wealth tax for the super rich; introduce inheritance tax; Plug the Mauritius route, and review the Double Taxation Avoidance Agreement with Mauritius and other countries.
  • Financial Sector Regulation – Reversing move towards Full Capital Account Convertibility; Prohibiting P-Notes; Scrapping the Banking Regulation (Amendment) Bill to prevent takeover of Indian banks by foreign banks; Scrapping proposed legislation to raise FDI in insurance; No privatization of pension funds, no diversion of pension/provident funds to stock market.
  • Land Reforms -  Reverse the current thrust to dilute land-ceiling laws;  Takeover and distribution of all surplus land above ceiling.
  • Industrial Development -  Strengthening and expansion of the public sector;  Complete halt to disinvestment of profit-making
    and potentially viable PSUs; Protection of domestic industry from indiscriminate lowering of import duties and takeover of
    existing Indian companies by Foreign companies;  Prohibition of FDI in retail trade; and  Prohibiting export of iron ore and increasing royalty rates on coal and other minerals.
  • Social Reforms: Provide reservation in the private sector;  Public expenditure on education to be 6% of GDP, enacting the Right to Education bill, with Central government the major financial contributor; Public expenditure on health to be raised to 5% of
    GDP; All essential drugs to be brought under price control.

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