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Confederation of Central Government Employees analyses Budget 2015-16
CONFEDERATION OF CENTRAL GOVT. EMPLOYEES & WORKERS
1st Floor, North Avenue PO Building, New Delhi – 110001
K. K. N. Kutty
Dated: 28th Feb. 2015.
The Budget of Modi Government for the year 2015-16 presented today to the Parliament by the Finance Minister, Shri. Arun Jaitley belied all expectations of the poor people who placed their faith in the BJP in the last general elections. It is without doubt an anti-poor and pro-rich Budget. The Corporate Tax has been slashed to please the giant multinational Corporate houses, who really are the rulers in most of the Countries of the world, including ours. The Government has foregone about 8300 crores of direct tax revenue. The burden has been put on to the shoulders of the common working people in the form of indirect taxes to the extent of more than 23000 crores mostly coming from the increased service tax kitty.
Except raising the transport allowance exemption from Rs. 800 to Rs. 1600 p.m which only benefits the higher segment of tax payers among the salaried class, no concession or tax reduction has been given to the wage earners.
By not raising the non-taxable maximum which was needed in view of the high level of inflation, Modi Government has not only squeezed the middle class but also amassed more tax revenue from those class of wage earners, who get dearness compensation. In the process Government continue to ignore several judgments to exempt DA from taxation as DA is considered as a receipt, compensatory in nature. The salaried class of tax payers was constantly demanding the re- introduction of deduction under section 16(1) of the I.T. Act which was in vogue years back. While retaining such concession and deduction to all other segment of tax payers, the Government continue to penalise wage earners who are really the honest tax payers.
Allocation for every social welfare schemes which targets the deprived section of the society has been reduced in percentage terms, the largest reduction being in the ICDS programme. The tax concessions to the rich and corporate houses are of the order of 5.89 lakh crores. This apart, the wealth tax has been fully abolished.
The Budget 2015-16 has unambiguously declared the intention of the Modi Government to pursue the neo- liberal economic policies vigorously.