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 Oppurtunities.
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 there in 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
