Assam: It’s regressive & contractionary budget, says Debabrata Saikia

Staff Reporter

GUWAHATI: Leader of Opposition in the Assam Legislative Assembly Debabrata Saikia termed the Union Budget 2024–25 presented by Union Finance Minister Ajanta Neog as a regressive and contractionary budget, and said that in the context of the current economic realities of high unemployment, rising food inflation, widening inequalities, and slow private investment, the budget should have focused on expanding economic activities. “However, its proposals are contractionary and regressive, imposing further miseries on the population and depressing investment and employment generation,” he said.  

On revenue and expenditure mismanagement, Saikia said, “Government’s revenue earnings increased by 14.5%, while expenditures grew by only 5.94%. Instead of using increased revenues to expand economic activity, they were used to reduce the fiscal deficit from 5.8% to 4.9% of GDP, appeasing International Finance Capital.”

He said, “The budget’s GDP calculations are accused of data manipulation. Nominal GDP growth is projected at 10.5%, while real GDP growth is projected at 6.5–7%. These figures are calculated by deflating nominal growth by a ‘core’ inflation rate of 3%, excluding the high food inflation rate of 9.4%, thus exaggerating real GDP growth.” On Assam and the Northeast, “The budget fails to adequately address the unique challenges faced by Assam and the north-eastern states.

Insufficient allocation for flood control and disaster management in Assam, a region frequently affected by natural calamities, is quite strange. The lack of focused investment in infrastructure development in the Northeast is crucial for the region’s connectivity and economic integration with the rest of the country. The tea industry in Assam requires specific measures for revival and support to sustain the livelihoods of millions dependent on it. The budget overlooks the need for special economic packages to boost tourism, agriculture, and local industries in the Northeast.”

 Also read: Finance Minister Nirmala Sitharaman blasts Opposition over ‘biased’ Budget slur (sentinelassam.com)

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