People's Democracy

Central TUs On Budget 2004-05

A joint meeting of the central trade union organisations – AITUC, AICCTU, CITU,  HMS,  INTUC, TUCC, UTUC and  UTUC-LS was held on July 12, 2004 at New Delhi to discuss the union budget 2004-05 presented by the finance minister of the UPA government on July 8, 2004. Following is the statement issued by the CTUOs after the meeting:

WHILE we welcome the proposals in the budget for augmenting investment and welfare measures for the agricultural and rural economy covering major sections of our population, including commitment to implement at least 100 days employment guarantee scheme and employment through food for work, we however express serious concern over several of the ominous steps announced. We also take a serious view of certain shortcomings therein, which are against the interests of the common people and the national economy and in contravention of the basic spirit of the electoral mandate.

We, therefore, urge the UPA government to seriously reconsider its approach on the following issues of urgent importance and make appropriate changes in the budgetary proposals:

1. Re-examine the decision on maintaining 8 per cent interest rate on Special Deposit Scheme (SDS), GPF and PPF which was reduced from 12 per cent to 8 per cent by the NDA regime in successive years. Fixing the rate of interest at 8 per cent will push the rate of interest on Employees Provident Fund further down. Therefore interest rate on SDS requires upwards revision, keeping in view the united demand of the trade union movement since April, 2002 for restoration of the same to 12 per cent.

2. Make adequate budgetary allocations for extending social security for the workers in the unorganised and agricultural sectors, along with steps for early passage of requisite legislations for these sections on the lines suggested by the CTUOs.

3.  Scrap decision for enhancing FDI cap for telecom, civil aviation and insurance sectors, which will result in foreign finance capital securing a total grip over these sectors of economy thereby jeopardising national security and economy.

4. Withdraw the taxation on perquisites/welfare benefits imposed during 2001-02 and the present proposal to subject the terminal benefits of social security scheme to taxation.

5. Expedite steps for revival of the sick public sector units which are potentially viable within the PSU framework and make adequate provisions therefor.

6. Clear all unpaid wages and statutory dues of the workers in all PSUs.

7. Scrap the decision on de-reservation of 85 items from the list earmarked for small-scale sector. Provide concessional credit to the small scale and tiny sector.

 We have decided to seek an early meeting with the prime minister to press for the review of the budgetary proposals in respect of the above issues.

We also call upon all the trade unions, irrespective of affiliations, to remain firm and remain prepared to move into action by unitedly rallying the working people throughout the country to realise these genuine and pressing demands.

The signatories to the statement were: M K Pandhe (CITU), Gurudas Dasgupta (AITUC), Swapan Mukherjee (AICCTU), A D Nagpal (HMS), G Devarajan (TUCC), Abani Roy (UTUC), K Chakraborty (UTUC-LS)

* INTUC was represented by Chandidas Sinha at the meeting. Though he was in agreement with most of the demands, he said INTUC had differences over a couple of issues, which would require him to have consultation with his organisation. Other CTUOs requested the INTUC to favourably consider joining the united move by the CTUOs. (INN)