UNION FINANCE MINISTER
HOLDS PRE-BUDGET CONSULTATION MEETING WITH THE REPRESENTATIVES OF TRADE UNION
GROUPS
Press Information
Bureau
Government of India
Ministry of
Finance
06-June-2014
15:31 IST
Union Finance Minister Holds Pre-Budget
Consultation Meeting With the Representatives of Trade Union Groups; Skill
Development to be Given Priority for Generating Employment Opportunities.
The
Union Finance Minister Shri Arun Jaitley said that skill development would be
given priority so that more and more trained workers join the Indian economy.
He said that the Government will give due consideration to the Ten Point Joint
Charter of Demands given by the Central Trade Unions while formulating the
budgetary proposals. The Finance Minister was speaking here today while
interacting with the representatives of the Central Trade Unions as part of his
Pre-Budget Consultation meetings.
Along
with the Finance Minister, the meeting was attended by Ms. Nirmala Sitharaman,
Minister of State for Finance and Corporate Affairs, Shri Ratan P. Watal,
Expenditure Secretary, Shri Rajiv Takru, Revenue Secretary, Smt. Gauri Kumar,
Secretary, Ministry of Labour and Employment and senior officers of the
Ministry of Finance among others.
The
participating Central Trade Unions gave a joint memorandum to the Finance
Minister for his consideration and positive response. Some of the specific
proposals contained therein are given below:
Take
effective measures to arrest the spiraling price rise and to contain inflation;
Ban speculative forward trading in commodities; universalize and strengthen the
Public Distribution System(PDS); ensure proper check on hoarding; rationalize,
with a view to reduce the burden on people, the tax/duty/cess on petroleum
products.
Massive
investment in the infrastructure in order to stimulate the economy for job
creation. Public Sector should take the leading role in this regard. The plan
and non-plan expenditure should be increased in the budget to stimulate jobs
creation and guarantee consistent income to people.
Minimum
wage linked to Consumer Price Index (CPI) must be guaranteed to all workers,
taking into consideration the recommendations of the 15th Indian Labour
Conference . It should not be less than Rs. 15,000/- p.m.
FDI should not be allowed in crucial sectors like
defence production, telecommunications, railways, financial sector, retail
trade, education, health and media.
The
Public Sector Units (PSUs) played a crucial role during the year of severe
contraction of private capital investment immediately following the outbreak of
global financial crisis. PSUs should be strengthened and expanded.
Disinvestment of shares of profit making public sector units should be stopped
forthwith.
Budgetary support should be given for revival of
potentially viable sick CPSUs.
In
view of huge job losses and mounting unemployment problem, the ban on
recruitment in Government departments, PSUs and autonomous institutions
(including recent Finance Ministry’s instruction to abolish those posts not
filled for one year) should be lifted as recommended by 43rd Session of Indian
Labour Conference. Condition of surrender of posts in government departments
and PSUs should be scrapped and new posts be created keeping in view the new
work and increased workload.
Proper allocation of funds be made for
interim relief and 7th Pay Commission.
The
scope of MGNREGA be extended to agriculture operations and employment for
minimum period of 200 days with guaranteed statutory wage be provided, as
unanimously recommended by 43rd Session of
Indian Labour Conference.
The
massive workforce engaged in ICDS, Mid Day Meal Scheme, Vidya volunteers, guest
teachers, Siksha Mitra, the workers engaged in the Accredited Social Health
Activities (ASHA) and other schemes be regularized. No to privatization of
centrally funded schemes. Universalization of ICDS be done as per Supreme Court
directions by making adequate budgetary allocations.
Steps
be taken for removal of all restrictive provisions based on poverty line in
respect of eligibility coverage of the schemes under the Unorganized Workers
Social Security Act 2008 and allocation of adequate resources for the National
Fund for Unorganised Workers to provide for social security to all unorganised
workers including the contract/casual and migrant workers in line with the
recommendations of the Parliamentary Standing Committee on Labour and also the
43rd Session of Indian Labour Conference. The word BPL redefined and
redistributed at the earliest.
Remunerative
prices should be ensured for agricultural produce and Government investment,
public investment in agriculture sector must be substantially augmented as a
proportion of GDP and total budgetary expenditure. It should also be ensured
that benefits of the increase reach the small, marginal and medium cultivators
only.
Budgetary
provision should be made for providing essential services including housing,
public transport, sanitation, water, schools, crèche, health care etc, to
workers in the new emerging industrial areas. Working women’s Hostels should be
set-up where there is a concentration of women workers.
Requisite budgetary support for addressing crisis in
traditional sectors like jute, textiles, plantation, handloom, carpet and coir
etc.
Budgetary
provision for elementary education should be increased, particularly in the
context of the implementation of the ‘Right to Education’ as this is the most
effective tool to combat child labour.
The
system of computation of Consumer Price Index (CPI) should be reviewed as the
present index is causing heavy financial loss to the workers.
Income tax exemption ceiling for the
salaried persons should be raised to Rs. 5.00 lakh per annum and fringe
benefits like housing, medical and educational facilities and running
allowances should be exempted from income tax net in totality.
Threshold
limit of 20 employees in EPF Scheme be brought down to 10 as recommended by
CBT-EPF. Pension benefits under the EPS unilaterally withdrawn by the
Government should be restored. Government and employers contribution be
increased to allow sustainability of Employees Pension Scheme and for provision
of minimum pension of Rs. 3000/- p.m.
New Pension Scheme be withdrawn and newly
recruited employees of Central And State Governments on or after 1.1.2004 be
covered under Old Pension Scheme;
Demand for Dearness Allowance merger by
Central Government and PSU employees be accepted and adequate allocation of
fund for this be made in the budget.
All
interests and social security of the domestic workers to be statutorily
protected on the lines of ILO Convention on domestic workers.
The
Cess management of the construction workers is the responsibility of the Finance
Ministry under the Act and the several irregularities found in collection of
cess be rectified as well as their proper utilization must be ensured.
In regard to resource mobilization, the
Trade Unions have emphasized on the following:
A
progressive taxation system should be put in place to ensure taxing the rich
and the affluent sections who have the capacity to pay at a higher degree. The
corporate service sector, traders, wholesale business, private hospitals and
institutions etc should be brought under broader and higher tax net. Increase
taxes on luxury goods and reduce indirect taxes on essential commodities.
Concrete steps must be taken to recover huge
accumulated unpaid tax arrears which has already crossed more than Rs. 5.00
lakh crore on direct and corporate tax account alone, and has been increasing
at a geometric proportion. Such huge tax evasion over and above the liberal tax
concessions already given in the last two budgets should not be allowed to
continue.
We
welcome the constitution of SIT for black money and urge for speedy action.
Effective
measures should be taken to unearth huge accumulation of black money in the
economy including the huge unaccounted money in tax heavens abroad and within
the country. Provisions be made to bring back the illicit flows from India
which are at present more than twice the current external debt of US $ 230
billion. This money should be directed towards providing social security.
Concrete
measures be expedited for recovering the NPAs of the banking system from the
willfully defaulting corporate and business houses. By making provision in
Banking Regulations Act, CMDs and executives to be made accountable for
creation of NPAs.
Tax
on long term capital gains to be introduced, so also higher taxes on the
security transactions to be levied.
The rate of wealth tax, corporate tax, gift tax etc to
be expanded and enhanced.
ITES,
outsourcing sector, educational institutions and health services etc run on
commercial basis should be brought under the Service Tax net.
Small
saving instruments under postal and other agencies be encouraged by
incentivizing commission agents of these scheme.
Other
suggestions include holding of post budget consultations with the
representatives of Central Trade Unions, need for directional change in
policies such as stopping of mindless deregulation, encourage entrepreneurship
to tackle problem of unemployment, more spending on education and skill
development, removal of ceiling on gratuity, bonus and pension etc of workers
and following the principle of “Same work, same wages” among others.
Representatives
of different Central Trade Union groups who participated in today’s meeting
included Shri B.N. Rai, Bhartiya Mazdoor Sangh (BMS), Shri Chandra Prakash
Singh, Indian National Trade Union Congress (INTUC), Shri Shanta Kumar, INTUC,
Ms Amarjeet Kaur, Indian National Trade Union Congress (INTUC), Shri D.L.
Sachdeva, Indian National Trade Union Congress (INTUC), Shri Sharad Rao, Hind
Mazdoor Sabha (HMS), Shri Harbhajan Singh Sidhu, Hind Mazdoor Sabha (HMS),
Shri Swadesh Devroye, Centre of Indian Trade Unions (CITU), Shri Tapan
Sen, MP (RS), Centre of Indian Trade Unions (CITU), Shri Dilip Bhattacharya,
All India United Trade Union Centre (AIUTUC), Shri Sankar Saha, All India
United Trade Union Centre (AIUTUC), Shri Sheo Prasad Tiwari, Trade Union
Coordination Centre (TUCC), Shri V.Suburaman, Labour Progressive Federation
(LPF), Shri M. Shanmugum, LPF, Shri Prechandan, United Trade Union Congress
(UTUC), Shri Abni Roy, United Trade Union Congress (UTUC) and Dr. Virat
Jaiswal, National Front of Indian Trade Unions among others.
Source: PIB News
