Pre-Budget Consultations

The full and final budget of the Government of India for the current year, 2019-20, will be presented on 5th July by the new Finance Minister, Ms. Nirmala Sitharaman. An Interim Budget was presented on 31st January by the then acting Finance Minister Piyush Goyal. This has been the general practice whenever Lok Sabha elections are held, that the new government presents the final budget in the month of July.

Starting in the middle of June, Finance Minister Sitharaman has been chairing a series of pre-budget consultation meetings with different groups of representatives of big capitalist companies and big banks. In these consultative meetings, the capitalist spokesmen put forth numerous demands.

The representatives of big banks urged the Government to lower the interest rate offered on small savings schemes such as National Saving Certificate, Public Provident Fund and Sukanya Samriddhi. They argued that 8% and 8.5% tax-free interest being offered under such schemes makes it less attractive for people to keep their savings in bank fixed deposits, which are offering 7% to 7.5% taxable interest. In other words, the capitalist money lending institutions want the government to compel people to keep more of their savings with the banks, so that they are readily available for borrowing by the big capitalist companies.

The representatives of automobile companies, Indian and foreign, asked the government to pass a law for banning passenger vehicles which are 15 years old. The aim is to compel people with old cars to buy new ones. Such a law exists in the National Capital Region of Delhi at this time. The auto capitalists want it to be extended to the rest of the country. They also want some tax “incentives” to be offered to them for shifting from petrol and deisel engines to electric engines.

Various other representatives of capitalist monopoly houses urged the government to step up public investment in infrastructure, to make up for the continuing slack in private investment. They argued that this is essential for giving a boost to the slowing economy, and must be done even at the cost of a higher level of government borrowing than envisaged in the Interim Budget.

All the demands put forward by representatives of different capitalist groups were aimed at boosting their profits, at the expense of the working people and the general interests of society.

One meeting was held with representatives of workers’ unions. The Finance Minister asked her second-in-command to chair this meeting. The representatives of workers’ unions reiterated their demands for strict implementation of minimum wages and a comprehensive unemployment insurance scheme.

It is to be noted that a circular issued by the Ministry of Finance to all other central ministries at the end of May had stated that “Allocations projected in the Interim Budget 2019-20 will not be altered”. It stated that any additional requirement of funds by any Ministry must be backed by strong justification. The meaning of this circular is that beyond the so-called “pro-people” schemes announced in January, namely the income transfer scheme for peasants and pension scheme for retired workers in the informal sector, workers and peasants cannot expect any additional allocation of central government funds on their behalf. From this it is clear that the demands of workers and peasants for enhanced public procurement and public distribution is not going to receive any attention. Nor will the demand for comprehensive unemployment insurance. They will continue to remain unfulfilled.

By holding consultations with representatives of capitalists as well as those of workers’ unions, the Government is trying to create the impression that it is treating all classes of society equally. This is a fraud. It is a false impression. There is no equality between the exploiters and the exploited.

The capitalist monopoly houses are leaders of the ruling capitalist class. They provide the bulk of the money required to win elections. The party which gets to form the government is committed to fulfill the demands of the monopoly houses. The BJP government headed by Modi is no exception. It is not committed to fulfill any of the just and longstanding demands of workers and peasants.

The real purpose of pre-budget consultations are to provide a forum for monopoly capitalists, Indian and foreign, to formally convey their most urgent demands to the Finance Minister and team of officials involved in formulating the budget. It is in addition to informal consultation between ministers and influential monopoly capitalists, which goes on all the time, but behind the curtain.


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Pre-Budget    Consultations    Jul 1-15 2019    Political-Economy    Privatisation    Rights     2019   

पार्टी के दस्तावेज

8 Jan General Strike

Call of the Mazdoor Ekta Committee

The all India general strike has been called to resolutely oppose the course of enriching the capitalist minority by impoverishing the toiling majority. It has been called to assert the rights that belong to workers, peasants and other toiling people who create the wealth of India.

Hum Hain Iske Malik! Hindostan Humara!

Election manifesto of a CGPI supported candidate for Lok SabhaParties of the capitalist class claim that there is no alternative to the program of globalisation,liberalisation and privatisation. The truth is that there IS an alternative.The alternative is to reorient the economy to fulfil people’s needs instead of fulfilling capitalist greed. This is the program for the Navnirman of India.

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5th Congress DocumentThe Report to the Fifth Congress of the Communist Ghadar Party of India, presented by Comrade Lal Singh, General Secretary of the CGPI, on behalf of its Central Committee, was discussed and adopted by the Fifth Congress of the CGPI, held in November 2016. By decision of the Fifth Congress, this report has been edited for publication.

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Click to Download PDFThe first part of this pamphlet is an analysis of facts and phenomena to identify and expose the real aims behind the Note Ban. The second part is devoted to a critical appraisal of the government’s claims that it will reduce inequality, corruption and terrorism. The third part is what Communist Ghadar Party believes is the real solution to these problems and the immediate program of action towards that solution.

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These Elections are a FarceInterview with Comrade Lal Singh, General Secretary of Communist Ghadar Party of India by Comrade Chandra Bhan, Editor of Mazdoor Ekta Lehar

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Manifesto 2014Unite around the program to reconstitute the Indian Republic and reorient the economy to ensure prosperity and protection for all!

There is growing realisation among workers, peasants and other self-employed people that the program of liberalisation and privatisation only serves to enrich an exploiting minority at their expense. Mass resistance is growing to this anti-worker, anti-peasant and anti-national program.

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