UPA Upswing after 2008-09 Budget

There is little doubt that the budget presented by the Finance Minister has taken the wind out of the sails of not only the opposition but also the Left that has been providing support to UPA. Many believe that the euphoria created by a budget that takes care of the problem of the farmers and the middle class will help in reaping rich electoral harvest. Not surprisingly the Congress workers are upbeat and look forward to the next round of elections.

by REPORTER@DAYAFTERINDIA.COM

The Union Budget proposals of 2008-09 seem to have taken fully the sails out the Opposition boat on one hand as well as the senior most supporters of the UPA government the Left parties that have not been on their best behaviour in the last three year.

The day Mrs. Sonia Gandhi, Congress President and UPA Chairperson addressed an election and political rally in Meghalaya a day after Budget day, it was interpreted by many as an election kick-of rally that would reverberate in all parts of the country, signaling euphoria for the Congress led government and a bit of a balloon prick for the BJP led opposition and the trying to be bossy Left parties during the preceding years.

Questioning the UPA government’s policy of inclusive growth, as emphasized by President Mrs. Pratibha Patil in her address to the joint sitting of both Houses of Parliament on the first day of the Budget session, the CPI(M) had alleged that the government’s policies seemed to be giving birth to two India’s, India shining and India suffering. The Left criticized the President’s address for missing out issues such as price rise and women’s reservation.

CPI(M)’s Sitaram Yechury hauled up the government by saying that the government’s policies had only widened the disparity between the rich and the poor. The suffering India resided in rural areas where farmers continued to commit suicide. He had said the Government should give them access to institutional credit and interest rate on farm loans should be fixed at 4 per cent. Almost like a wish list granted, finance Minister P Chidambaram in his budget speech announced a Rs. 60,000 crore for loan waiver that will benefit 40 million farmers across the country.

It has been underlined by observers however that these incentives will harm the rural economy in the long run. Defaulters will rejoice other farmers will wonder why they stuck to their payment schedules and will try to default in the future. Banks will shy away from giving rural loans, unless the government comes after them, threatening punitive measures. It will also become good news for rural money lenders, who in any case have a grip on the small and medium farmers. And foremost, this will not help find a solution to the basic problem of Indian agriculture - low productivity and a long investment drought.

The Government’s response and reaction or rear action on this aspect will have to be seen as the budget session of Parliament progresses, but right now, the urban middle class and men and women white collar employees have much to thank the finance Minister for the urban middle class tax payer has been left with extra money in his her pocket, with raising of tax slab limits in three levels. Being visible and vocal, these categories of tax payers will do Mr. Chidambaram and the UPA government a lot of good as they say a loud thank you to them, and are obviously going to be heard all over the raising of the tax slabs are expected to activate the consumer goods market or the car production industry. It will in turn help the economy – as more cars are sold, more people get employment in car plants, auto ancillaries, tyre dealership as well as provide a jump in two wheeler industry and its ancillaries.

Unfortunately for the Left parties, the budget proposals and its contents have come at a wrong time. Even after a good first look at the proposals they have not been able to point at any major act of omission or commission by the government and have taken cover by saying that it is an election budget and is aimed at pleasing everybody or everyman. That is how CPI national secretary D Raja chose to describe it as. Till more than 24 hours after the budget was read out in Lok Sabha, the two minor partners forward Bloc and Revolutionary Socialist Party have not found it fit to comment on the budget or join in the mild criticism of CPI(M) or CPI.

They, or at least forward Bloc has been feeling the pressure of Big Brother for the last several months and has now decided to speak in its own voice. For the first time in 30 years of the Left Front, Forward Bloc has decided to talk to the foreign missions in New Delhi of different countries including China, Cuba and United States of America, about the barbaric police firing at Dinhata in West Bengal on February 5 that killed five of its supporters.

The propaganda blitz of the LF junior partner, that is expected to begin soon, is intended not only to expose how the state police even under regime has become trigger happy but also the high handedness of CPI(M) which it treating its junior partners shabbily. Forward Bloc state general secretary Asoke Ghose has said the Dinhata firing has blackened Left politics that values democratic movements. It surely is a black mark on the politics and philosophy of CPI(M), which tried to take on a garb of democratic, just and equitable political dispensation.

With the Left parties bickering over their internal issues, the NDA yet to find a strong foot print in the national scenario despite their (especially BJP’s) win in state assembly elections in Gujarat and Himachal Pradesh, Congress led UPA needs a strong push to surge ahead, with the 2009 Lok Sabha elections as the long term goal post. For all we know, they just might, considering also that the much talked about but not yet firmed up Third front is still to emerge.