Date:12-03-2007
SHRI TATHAGATA SATPATHY (DHENKANAL): Sir, I thank you for giving me an opportunity to speak on the General Budget, 2007-08.
At the outset, let me admit that I am no whiz-kid on financial matters unlike our learned Finance Minister or those transferable mandarins in his Ministry or even those leading this country who are great proponents of liberalization, globalization and what not. I even fail to understand simple things. Since childhood, I know that grant is like a dole and loan is to be repaid back but when I read something like a ‘negative grant” to the National Highways Authority of India, I am unable to understand what it implies. So, right at the outset, I am willing to admit that I speak as a fool. But I understand certain things as I read the speech of the Finance Minister in English as a language. The feeling throughout the country is that, in the last ten Five Year Plans, the country has been so managed that it has become a Centre centric financial institution. All the powers which are supposed to be with the States like in the social sector, health, education and the finances of those which are devolved to the States, have all come to the Centre. For this reason, for the last 60 years, most of the States have become beggars while the Centre has become the largest money lender. This Budget is unique to be the first Budget of the Eleventh Five Year plan and everybody is accepting that the nation has a brilliant Finance Minister like Shri P. Chidambaram. He is such a logical person that everybody expected that he will give something new in his Budget. We expected a new directive so that the country has something different to look forward to in the 21st century where the issues primarily raised in his own home State, namely, the Centre- State relations, will be addressed in the coming years.
But unfortunately this Budget does not show any such indication of reversing this trend. As far as we understand, the Planning Commission has a mandate. The planning for this country is supposed to be done on the poverty index. This kind of planning would lead to equitable and sustainable development of the social infrastructure, like health, education, etc. We all are aware that the prime mechanism available with the Central Government to implement these projects is to depend on the States. We all realize that all the States are in the red as far as finances are concerned. They are struggling to pay the salaries of their employees. Every year, in every plan, we see that the Centre expects more and more involvement of the States’ finances in the Centrally-Sponsored Projects. So, a question comes to mind whether this Budget really addresses the problems of the equity of 25 per cent or 50 per cent, that is expected from the State.
In my State we have a lot of mining activities going on. This Budget has levied a tax of Rs. 300 on iron ore exports and Rs. 2000 on chrome. When you dig up 100 metric tones of iron ore, you get 40 per cent lumps and 60 per cent fines. In my State of Orissa, this huge quantity of 60 per cent has been one of the major exports. Let me make it very clear right at the beginning that I am a strong opponent of export of raw materials from this nation in general and from my State in particular. But on the other hand, I am seeing the reality in part of my constituency. From 1st of March many mining companies have virtually come to a grinding halt because fines take up so much storage space that it is impossible to continue further mining. So, when you levy such a tax, you must also know that fines are different from lumps. What do you do with the fines? Have you invested in R&D so that local industries within India are capable of using these fines to produce inverts? You have not done that. You take any big company, whether it is TATA, Birla or Jindal, they all export these fines, but they are not capable of using the fines in any of their own steel plants. So, what this country really needs to do is to create R&D and make the new plants able to use these fines so that we stop exporting these fines. But till such time, some sort of balance has to be found out. We should not simply and blindly go by the recommendations of the Hooda Committee. We can have this on the export of lumps. But as far as fines go, we have to re-think on what is the domestic demand and whether we should levy this tax or not. It is because you are creating a lot of unemployment due to this tax. The total iron ore mining between 2000-05 in India has been 524 million tones. It is very interesting to note that during the same time the reserves discovered went up by 3100 million tones.
What happens is that when there is a mine, they tell you it has say, ten, million tonnes of ore. But then as you do the mining, you realiase that it has much more than 10 million tonnes and it can go up to 20 or 30 million tonnes also. So our reserves have been found on record and the Government has these records that our reserves have gone up. So to help this industry, not help the mining companies but to help all these thousands of people, those truck operators, those truck drivers, those cleaners, those loading people, those loading on to trains, on to ships, in Government ports, all those people have to be taken into account because they are sitting with folded hands not knowing what to do.
Sir, the hon. Minister of Finance announced that in the mid-point of his Government which was November, 2006, the GDP went up from 7.5 per cent in 2004-05 to hopefully 9 per cent which the Prime Minister in his speech also mentioned. In the same breadth you admit that in the Tenth Plan the estimated average agricultural growth has been 2.3 per cent whereas you would have appreciated it if it would have been four per cent. It is very surprising to note that the Minister has so much concern for agriculture, but this concern for agriculture was not reflected in his Budget speech. On the one hand the investment in AIBP has gone up from Rs. 7,121 crore to Rs. 11,000 crore, we have to realize what this accelerated irrigation programme implies to the common farmer. It means more water to more farmers. But the figure of Rs. 7,000 and odd crore going up to Rs. 11,000 crore means, the Minister has taken care only of the inflationary trend. That means in reality, you are not concentrating on more investment, and on the other hand, a very dangerous statement was given in this House in which the Prime Minister said that because largely Indians have very small land holdings – he did not say it, but it seems clear to all of us -- therefore he said that rapid industrialization is the only way for this country. We have to see who we are going to serve, who is the aam admi, is it the big industrialist or is it the common farmer? We do not make any funding available to the common farmer and on the other hand, the head of the country says that small land holdings are no more economical. You think about industrialization. Are we going to be a country only for services or can we envision ourselves as a country which can be the food basket for the world in the years to come? This is a very serious issue which all of us and somebody like you who represents a rural constituency, have to think about this.
Sir, like I said about the States and the Centre, the Sarva Shiksha Abhiyan was only catering to a certain part of the school education. It was not touching the high schools or above that. It was touching only the secondary schools or below that. Earlier, you had earmarked Rs. 8,000 crore for that and today you have increased it to Rs. 10,671 crore. This is again just handling the inflationary trend. In the same breath you are saying that the States have to give 50 per cent of this share. Then, you know that you will be giving a few hundred or few thousand crores of rupees to the States and none of these States will be able to meet their 50 per cent. Therefore, you will not get the UC and that will imply that no project will get completed and your money will be kept with you. My question is this. What will the Minister do with so many crores lying in his coffers when development at the ground level actually does not take place?
On the topic of health, the Minster has mentioned two particular illnesses- one is HIV AIDS and the other is Pulse Polio programme. AIDS, as we know, has been holding the fascination of many an NGO, of all these UN-based organizations and crores of rupees are coming into this country.
I am surprised about one thing. What really excites all these foreign-funded organizations to go so heavily for AIDS? In the same light, I would say that this House must commend all those ladies and gentlemen who have been involved in the Pulse Polio Programme in this country. I think, in recent times, it has been one of those unique programmes which has been a great success where men and women involved in that programme have actually gone from house to house looking for babies which have been missed out in the formal programme. I think this has been a more detailed programme than even your census. So, we must commend that. But, at the same time, I would be very much obliged if the Minister bothers to answer why such diseases like brain malaria, leprosy, diabetes which are taking huge toll in India including tuberculosis, water-borne diseases like jaundice, gastroenteritis, hepatitis -B, Why have we not addressed these diseases? Why are we not focusing our attention on them?
In other proposals, the hon. Minister has spoken about the employment facilities for the physically-challenged.… (Interruptions)
I will make two or three points and then conclude my speech. Now I come to employment for the physically-challenged. When you expect the physically-challenged to go out of the security of their homes and start working, you expect that they will get a monthly income of Rs.25,000. You should also have one thing Whatever it is – monthly or annual income… (Interruptions)
SHRI P. CHIDAMBARAM: It is up to Rs.25, 000.
SHRI TATHAGATA SATPATHY: You say it is up to Rs.25,000. All right. I am sorry. When you say that it is up to Rs.25,000, it is your prime responsibility to see that they get it. How do you expect these people to go out and actually do a service? Our railway stations, airports - our roads do not even have sidewalks - do not have a toilet for the physically-handicapped. Our stations are such that even an able-bodied man gets tired carrying his luggage from one platform to the other. Our schools and colleges, none of these institutions, address the plight of the differently-able people. Let us put it this way. That is what is PC – Here, it is not P. Chidambaram Saheb. But it is “politically correct.” So, in the current Budget, you have earmarked Rs.1008 crore to enable one lakh physically-challenged people. How will they be able to do that? That has not been dealth with.
In other proposals, you also have institutions of excellence. We are very happy that both the Agriculture Universities of Comibatore in Tamil Nadu and Pant Nagar in Uttar Pradesh have been beneficiaries of your largesse. But I would like to draw the Minister’s attention that the Orissa University of Agriculture and Technology has been doing yeomen’s service in dry-land farming. But, unfortunately, it seems that Orissa does not exist in the map of this Government! Therefore, we have been completely left out.
In tax proposals, in clause 157 lies one of your worst decisions. Do you really want to make India a “preferred destination for drug testing? I want your attention on this issue. You have exempted. Clinical trials of new drugs from service tax. In the US or in Western Europe or even in countries like Thailand and Indonesia, they have banned drug testing. They are saying that if you want to test a drug, you have to tell the patient, you have to tell the family members and you have to get a form signed by the patient or any able family member saying “Yes, I agree if certain drugs are tried on this patient.”
But in India, by exempting them from service tax, you are enabling them to carry out clandestine tests. It is a matter of great concern for every right thinking person in this country. So, I would request the Finance Minister to withdraw this proposal immediately and show that this does not tally with another proposal which talks about exempting dredgers and tax concessions in infrastructure building which have been given in Section 165 and Section 133 because that smells like something where Sethu Samudram Project has crept into this Budget.
Coming to gender-sensitive budgeting, women assessees will now get a tax threshold of Rs. 1,45,000 giving them an annual benefit of about Rs. 1,000 only. Is this an encouragement? Is this genuinely gender-sensitive? Are you honestly bothered about women going out of their homes and working? If that be so, I would suggest that in today’s world Rs. Five lakh per annum is a normal salary and so you should think of women paying taxes at a threshold of Rs. Five lakh and above. Below that, it is simply a matter of hoodwinking the people.
Finally, I am very happy that the Finance Minister has named the Drinking Water Project after one of our illustrious late former Prime Ministers. My point is, just below that paragraph there is a smaller paragraph that deals with the Sanitation Project. I would just like to ask the hon. Minister one thing. Is not there anybody whom you can name this project after? If there is, then let the Finance Minister also take this step –it is in the interest of this country that healthy habits have to be taught to the people living in rural areas – and name this project after one of the illustrious figures who have led the Congress Party to power over and over again for the last 45 to 50 years.