P Chidambaram meets Trade Unions on Budget

New Delhi Dec 29: Finance Minister P Chidambaram and Trade Unions, who do not see eye to eye on many issues, today sat on the same table to thrash out ways to accomodate the interests of workers and the middle class in the coming Budget.

Mr Chidambaram was at pains to explain the success of the policies of the UPA government, especially the huge outlays on social sectors, but the Trade Unions stuck to their guns that the policies of liberalisation and globalisation were spelling the doom for vast multitudes of people.

All the Central Trade Unions(TUs), including the BMS and INTUC, were present at the pre-Budget meeting of the Finance Minister in North Block.

The Unions made out a case for enhancing the Income Tax limit to two lakh rupees and provision of of three per cent bugetary allocation to provide social security to 370 million unorganised workers.

The Unions wanted the government to take urgent steps to contain spiralling prices, especially of essential commodities.

The other Unions who were present included the AITUC, CITU and HMS.

The suggestions made by the Trade Unions for larger resource mobilisation included increasing the tax GDP raito through a higher dose of taxation on the rich and affluent, including enhancing the rates of personal and coporate income tax for those in the higher income slabs.

The Unions, who submitted a joint memorandum to Mr Chidambaram, argued for restoration of interest rate on EPF to 9.5 per cent and withdrawal of ban on recruitment in government departments, autonomous institutions.

The leaders wanted the government to rescind the proposed new Pension System, which would amount to privatisation of social security. In this connection, they wanted the government to withdraw the Pension Fund Regulatory and Development Authority Bill.

The Trade Unions suggested opening of the Special Deposit Scheme for further investments and enahncing the coverage under the EPF Act.

With regard to fiscal profligacy, the Unions wanted that the large number of tax incentives and concessions to coporate houses and business be withdrawn.

They pressed for re-introduction of Inheritance Tax on high value properties which are bequeathed, long term captial gains tax, increase the tax on luxury goods and imports.

UNI