People's Democracy

(Weekly Organ of the Communist Party of India (Marxist)

Vol. XXX

No. 11

March 12, 2006

DYFI On Union Budget


The Democratic Youth Federation of India (DYFI) has issued the following statement on Union Budget 2006-07.


The Union Budget 2006-07 has failed to address the real problems of the Indian youth and the masses in general. The Finance Minister is much vocal about the continuous growth of the economy around 8%. But the Central problems of the economy agrarian crisis and unemployment have not been adequately addressing in the budget.


The Economic Survey 2005-06 clearly stated about the dismal picture of employment and unemployment in the country.


Unemployment on a daily basis has risen, says the survey. From 1993-94 to 2004 unemployment rate for males increased from 5.6 percent to 9 percent in rural areas and has 6.7 percent to 8.1 in urban areas. Similarly unemployment rate for females increased from 5.6 percent in 1993-94 to 9.3 percent is 2004, in rural areas and from 10.5 percent to 11.7 percent is urban areas.


The Union budget is not speaking on the question of the generation of quality employment in the country. Instead of giving any clear proposal, the budget speech simply gives some statements about the areas which would generate employment like textile, tourism etc.


The NCMP committed to introduce Employment Guarantee Scheme is not provided with enough budgetary allocation, which is now only 25% of the expected estimate. The reduction is customs duties on a wide range of goods will hurt small producers and cause joblosses for workers.


Similarly the area of education is also not considered seriously. The promise of the UPA Government to increase spending on education to 6% of GDP is not fulfilled and the budget estimate is far below.


The Central Executive Committee of DYFI has registered its strong protest against the negative attitude of the UP Government towards the genuine problems of the younger generation of the country.