The political wishlist certainly seems to suggest that Budget 2008 will be for the aam admi. With the Left breathing down the Government’s neck, and elections round the corner, corporates may have little to cheer about.
Ahead of Budget 2008, wishlists are pouring in and members of the ruling party have their own set of do's and don’ts for the Finance Minister.
This being the last full budget of the UPA ahead of the elections, senior Congress leaders have demanded the FM to curb the menace of price rise, increase investments in agriculture and education and improve the delivery system of key flagship projects like the NREGA.
The FM met senior Congress party leaders on Thursday.
Congress MP Jyotiraditya Scindia said, “We have told the FM that the need of the hour is to reform agriculture, increase public spending in agriculture. I think the problem is also one of execution, our track record in execution is very poor.”
Corporate India is willing to pitch in but wants the government to facilitate greater participation.
‘No, thank you,’ says the Left- there is no space for private players in agriculture.
CPI National Secretary D Raja said, “I agree agriculture needs increased investment. But I am opposed to contract farming. I don't think the corporate sector should be allowed.”
The other big corporate concern is the lack of skilled workers. India Inc. is keen to partner with the government to address the issue but wants some sweeteners.
CII former President Arun Bharat Ram said, “The Left has always opposed the entry of private players into education. I appeal to them. “
But like agriculture, corporate participation in education also met with suspicion from the Left.
D Raja said, “There is commercialisation of education; we need government schools.”
As if this wasn’t enough of a dampener, Raja's final blow was a call for higher corporate to fund social sector programmes.
D Raja added, “Raise corporate taxes. They don't need the host of exemptions given to them.... Why?”
As expected, there was vociferous opposition from Corporate India.
Ranbaxy MD & CEO Malvinder Singh said, “Corporates are always made scapegoats; there is no case for increasing taxes.”
Infact the opposition jumped into bat for India Inc.
Rajiv Pratap Rudy, Spokesperson, BJP said, “So basically what this government is saying that we don't want corporates; we want to kill you and use your money to fund our programmes though reforms are going nowhere in this government.”
That certainly seems to be the case with labour reforms; the mere suggestion is like waving a red rag to a bull. The Left’s opposition to almost every corporate suggestion has industry leaders worried. They hope Budget will not mirror the rhetoric of the debate.
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