SYNOPSIS OF DEBATES - THE FINANCE (NO.2) BILL, 2009 - dated 27-7-2009

LOK SABHA

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SYNOPSIS OF DEBATES

(Proceedings other than Questions & Answers)

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Monday, July 27, 2009 / Sravana 5, 1931 (Saka)

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THE FINANCE (NO. 2) BILL, 2009 - CONTD.

SHRI SANJAY NIRUPAM continuing said: India has emerged as the fastest growing economy in the scenario where we are facing drought on one hand and global recession on the other.  I would like to draw the attention of the Government towards two issues.  There should be some control over commodity exchanges.  It should be considered as to what commodities should be traded and levying of transaction tax on commodity trading should also be reconsidered because the functioning of commodity exchanges is even more volatile than the stock market.  Commodity exchanges should be brought under SEBI for regulation.  This work should be brought under the purview of Finance Ministry instead of Agriculture Ministry.  Commodity exchanges trade things of everyday use of common man.  If speculators and traders begin trading the food items of everyday use to make money then it would be another reason for the hike in prices.  It is my request to exclude the urban cooperative banks from the tax net.  Villages should be developed but now is the time to pay attention towards cities also.  Urbanisation is taking place at the rate of 40 per cent right now and with it is increasing the number of the urban poor.  There are certain programmes and schemes for the development of cities but due attention is not given to them.  I welcome the Government's resolution to wipe JJ clusters from the face of the country.  The people living in the JJ clusters are as poor as the rural population.  In this context I welcome the Rajiv Awas Yojana.  The Union Government should formulate schemes and comprehensive policy for urban development but should not depend entirely on State Governments and Municipal Corporations for their implementation as the functioning of our municipalities are not up to the mark.  Today Mumbai is facing crisis of drinking water as well as electricity.  The Union Government should have a say in the pricing policy and supply of electricity even after privatization of the sector.  The people of Mumbai are facing a rough patch after large scale migration.  The Government should pay attention towards this and formulate schemes for the upliftment of the urban poor.

Almost 25 to 30 lakh people have availed home loan in the country.  Instructions should be issued through RBI to slash the interest rate on home loan and do away with the floating rate system and home loan should be given on fixed rate only to benefit the large section of people who have availed the home loans.  

SHRI MANGANI LAL MANDAL: It is a reformative budget but poverty and regional imbalance are two issues which have not been given due attention.  A resolution has been made to bring down the percentage of people living below poverty line to less than half of the present level by 2014.  The budget does not mention the financial measures to be adopted for the purpose.  The backward and poor states are suffering a lot due to regional imbalance.  

On the basis of a survey conducted by the National Sample Survey Organisation about 21.8 per cent people in the country are living below poverty line today.  According to Lakadwala Committee 1 crore 22 lakh people are below poverty line in Bihar.  But you have fixed this figure at 62 lakh as per the figures of National Sample Survey Organisation.  This contradiction has not been taken care of in the budget and it has been resolved to bring more than half of the BPL people above poverty line during the next five years.  On this issue there should be a unanimous view of the State Governments and the Central Government.  Unless it is done, regional imbalance and poverty can never be mitigated.  Bihar stands grossly ignored so far as devolution of funds is concerned.  The concession given through the Finance Bill has not benefited the poor and backward States.  GDP has increased.  Our growth rate during the NDA regime was less than it has been during the UPA regime.  But the assets created in the country and the increase in the national wealth as a result of the fast growth rate has not changed the figure of 1 per cent BPL people coming above poverty line - be it during the NDA Government or today.  As regards per capita income Bihar is on the lowest pedestal today.  The national average in this regard is 21 while the percentage of BPL people in Bihar is 47.  How will the Government bridge this gap?  There is inequality among states and there is regional imbalances.  Unless it is removed, we cannot build a society as per the resolution of Mahatma Gandhi.  Announcements have been made to accord special category status to certain States.  But Bihar is still being ignored and no exemption in taxes is being given to Bihar.  You are not taking any effective measures to encourage people from outside to invest in Bihar.  Bihar should be given the status of a special State.  The people marooned by the Kosi floods should be rehabilitated.  Nothing has so far been done in this regard.  Then how can we remove regional imbalances?  How can we remove poverty from the poor States, and how can we mitigate half of poverty from the country by the year 2014?  As long as such political budgets continue, no good will be done to the country and no egalitarian society can be even imagined of.  Unless there is a political vision and an ideal approach, the country cannot develop.  The Prime Minister has announced to make 1000 villages as model villages and for that Rs.500 crore has been provided in the budget.  As regards opening branches of banks everywhere the most important committee was Narsimhan Committee which recommended to set up at least one commercial bank per 15,000 population.  This has not yet been done.  Unless the schemes and programmes of the Government are implemented properly, the development of Bihar and the country cannot take place.  As regards the recommendation of Narsimhan Committee you have made the Scheduled Castes the basis for making model villages.  This is a welcome step.  

It appears the banks have been left to serve only the corporate people.   The common people have to face a lot of difficulties in raising agricultural loan and crop loan.  In the end, Bihar is facing drought.  We are happy that you provide funds as assistance to various States affected by natural calamities, but why is step motherly treatment being meted out to Bihar?

SHRI P.C. CHACKO: This Finance Bill as well as the Budget presented in this House by the hon. Finance Ministry truly reflects the aspirations of the people.  The main objective of this Budget is inclusive growth and equitable development which is taking care of the interests of development as well as the social requirement of the pro-poor programme.  The limited objective of this Finance Bill is to give Constitutional validity and support to the proposals in the Budget.  Year after year, new tax reforms are being implemented.  The UPA Government is determined on the Kelkar Committee Report which made proposals as to how the tax can be reformed.  Our approach has always been to eliminate the distortions in the taxation system and widen the tax net.  So, this Finance Bill very clearly indicates that India's Tax, GDP ratio is increasing.  The Tax, GDP ratio of India today is 11.5 per cent.  Widening the tax net is the objective, by means of which we can bring down the rates.  The tax income which is collected by the Government is being spent for the pro-poor programme.  Today the Government is in a position to spend huge amount of money for the welfare of the people.  The Government is casting a safety net around the poor people.  The pro-poor programmes, the poverty alleviation programmes are being taken up in this country.  Under NREGA programme, there is 144 per cent increase in the allocation. After implementation of NREGA workers of my state are going back because they are getting sufficient work and wages. About the tax reform, the Kelkar Committee has submitted some very important recommendations before this Government.  Now, the Income Tax Act is going to be changed, and we are going to discuss a new Income Tax Code in the next 45 days.  Another thing is the Goods and Services Tax.  Today, various kinds of taxes are there in the country.  So, a common man is so much confused about all these taxes.  All these things are going to give way for the Goods and Services Tax.  Income Tax return should be simplified.  For voluntary retirees, a sum up to Rs. 5 lakh was exempted from income tax. Their whole amount has to be exempted from income tax.  This Budget is criticized because of the fall of Sensex.  But ours is a pro-poor Government.  So, we are more worried about the price increase in the local market and not in the Bombay Stock market.  Disinvestment was not announced in this Budget.  There was disappointment among some people and so there was a fall in the stock market.  This Government has not increased any tax in spite of increase in budget deficit.  India is a growing country and this growing economy can make up this fiscal deficit.  So, we can manage for 6.2 per cent fiscal deficit.  MAT has been increased to 15 per cent.  Under the Business Turnover Tax, up to Rs.40 lakh has been brought to the tax net.  That means, the base is widened.  Benefit of the tax reduction for the education loan has been made universal.  Service tax is extended to coastal cargo.  It will affect the common man.  We have to use the latest technology for the welfare of the common people.  Now, the CFL lamps are given under the Rajiv Gandhi Vidyutrikaran Yojana.  The electricity shortage is acute in this country.  The abolition of the fringe benefit tax, additional duty on the taxes and so many other things are going to create more money in the hands of the poor people. That shows the determination and target of this Government.

SHRI TUFANI SAROJ: The Government has not provided sufficient allocation for agriculture in this Finance Bill.  More funds should be provided for agriculture.  It has not paid due attention towards basic needs like seeds, water, pesticides, fertilizers and irrigation facilities.  Allied activities like dairy, fisheries, animal husbandry and horticulture have been neglected in the Budget.  The prices of fodder have increased.  Large scale subsidy should be provided on fodder. Yield of cash crops like pulses, oilseeds and sugarcane is decreasing year by year.  Inadequate funds have been allocated for irrigation.  Seventy Five percent of the cost of mini tubewells should be borne by the Government so that poor farmers can irrigate their fields.  About 40 years ago, late Indira Gandhi had given the slogan of garibi hatao but we have not achieved any remarkable success in this regard.  In the field of education 72 thousand posts of teachers are lying vacant at secondary level whereas two lakh new teachers are required to be recruited.  The Government has launched Madhyamik Shiksha Abhiyan under Sarva Shiksha Abhiyan for which six thousand model schools should be opened at Block level.  But only Rs.300 crore have been provided under this head in the Budget.  The Government has proposed to open 12 Central Universities in the country and provided Rs.827 crore for the same but Uttar Pradesh does not figure in the list of said proposed central universities.  Rs.13980 crore have been provided under National Rural Health Mission but even today doctors do not want rural posting because of lack of basic facilities there.  There is shortage of 31000 Health Sub-centres,  5000 Primary Health Centres and more than 2500 Community Health Centres in the country.  Ayurveda, Homeopathy and Unani systems of medicines have been completely neglected.  Last year, Rs.17.19 crore had been provided for this but this year only Rs.13 crore is provided.  There is no arrangement of psychiatrists to look after psychiatric patients in district hospitals.  Service tax is proposed to be levied on goods transported through rail and cargo.  It will have cascading affects on prices.  MPLAD funds should either be increased to Rs.10 crore or this scheme should be discontinued.  Rs. 10 crore be provided to each Member of Parliament from the funds provided to the State Governments.  The Members of Parliament will then spend this money on the development of their constituencies.

SHRI MAHENDRASINH P. CHAUHAN: The country is facing three major problems i.e. poverty, population and pollution.  All these three are inter-linked but the steps we ought to take about population, are not being taken.  The existing list of BPL families is unjustified and wrong.  My first suggestion is that a fresh survey should be conducted and those who are really poor and deserves to be considered must be included in this list so as to provide justice to them.  My second suggestion relates to housing.  Those who own a kuccha house should get pucca house irrespective of the fact whether or not their names are included in the BPL list.  My third suggestion relates to toiling farmers.  They should get all benefits in the face of severe drought conditions.

 SHRI P.L. PUNIA: You are aware that the whole world is passing through a period of economic recession.  Under these difficult circumstances, hon. Finance Minister has presented a development oriented Budget.  For the first time in the history of India, this Budget has provided for a plan expenditure of more than 10 lakh crore. We shall receive revenue receipts and capital receipts together to the tune of  Rs. 10,20,838 crore.  Under the head of capital receipts, a sum of Rs. 4,996 crore has been shown as funds mobilized through borrowings.   This is fiscal deficit which seems to be justified keeping in view the requirements of the country.  Hon. Finance Minister deserves all appreciations for it.  He has shown exemplary leadership in strengthening the country's economy.  This time a substantial allocation has been made for infrastructure.   It has been increased by 23 per cent for highways, 50 per cent for railways, 160 per cent for DRP in the Department of Power, 144 per cent for NREGA, 45 per cent for Bharat Nirman Yojana, 59 per cent for PMGSY, 27 per cent for Rajiv Gandhi Viduytikaran Yojana and 63 per cent for Indira Awas Yojana. I do hope that it will help create job opportunities in rural areas, add to purchasing power of villagers and finally give impetus to demand thereby bringing about improvement in the overall economy.

 This is quite a good Budget but efforts should be made to remove the regional imbalances.  The country will  progress only when all the provinces move fast on the path of development simultaneously. 

 Environment is an area of concern.  Laws enacted by the Central Government to protect and preserve the forests are being violated, this needs to be given special attention. I would like to make a pertinent point here that there should be a proper mechanism to monitor the utilization of funds allocated by the Central Government to State Governments. Through Special Component Plan, we have ensured that special schemes are formulated for SCs/STs.  However, it has been observed that funds allocated for these schemes are diverted to other schemes.  Such diversion of funds  needs to be checked.  Delivery system is another aspect which needs to be kept in focus.

 SHRI PRABODH PANDA:  At the outset I would like to refer to the tax proposals.  The Government has projected 6.8 per cent fiscal deficit.  But generation of resources through sale of 3G spectrum and through massive borrowing is a failure of this Government.  The Finance Minister has not done much to spur investment or deliver benefits to the poor and the deprived.  The increase in total expenditure in 2009-10 in relation to the revised figures of 2008-09 is just only 2 per cent of the GDP.  The Central Plan allocation has been increased by only one per cent of GDP.  The Government seeks to achieve stimulus growth by increase of one per cent of GDP.  This is the situation.  Much has been said about credit flow to the agriculture sector.  But this amount is not going to be invested through budgetary allocations.  It would be done through the banks.  My next point is about investments in the infrastructure sector.  Sixty per cent expenditure in infrastructure is by the PPP route.  In respect of NREGA it has been said that there has been a 144 per cent increase in the allocation of funds in respect of NREGA.  But in absolute terms the increase in amount is only of Rs. 3,250 crore.  The increase in allocation of funds in respect of the National Health Mission and ICDS is meagre.

 For food security, the Government has decided that 25 kilograms of foodgrains at the rate of Rs. 3 per kilogram will be given to every BPL family.  But under Antyodaya Anna Yojana, every BPL family is entitled to procure 35 kilograms of foograins per month at the rate of Rs. 2 Per kilogram.  So, I request the Government to enhance ten kilograms, from 25 kilograms to 35 kilograms, at the rate of Rs. 2 per kilogram as it existed in the case of the provision under Antyodaya Anna Yojana.  As regards interest rate in agriculture, the UPA Government have reduced one per cent interest in case of regular loan repayment.  Here I strongly demand that the Government should honour the recommendations of the National Commission on Farmers.   As regards the question of providing subsidy on fertilizers, the Government should clearly come out with a proposal that an arrangement will be made for providing subsidy directly to the farmers.  What do we see in agriculture right now?  The budgetary allocation is mostly for the revenue sector and not for the capital sector.  The Government is proposing six per cent interest rate  for agriculture.  But it is confined to short-term crop loan.  Nothing has been said about medium-term and long-term loans.

 SHRI VIJAY BAHADUR SINGH: Hon. Finance Minister had stated in his Budget speech that this Budget has focused on Aam Admi.  In India, if an Aam Admi actually exists, it is peasant and the multitude of our people connected with it.  But the agriculture sector has  received merely one per cent of the budgetary amount.  Rs. 1000 crore has been allocated for irrigation which I understand is not sufficient even to irrigate the horticulture sector.  

The Government has not cut down its own expenses.  For example,  there is no need now for Steel Authority of India Limited.  There are other departments also which can be shut down.  The Government wants to have four per cent growth rate in agriculture but Dr. Manmohan Singh Ji has admitted that for the last fifteen years, the agriculture sector has not witnessed even one per cent GDP growth.  So, we must give more attention to agriculture.  Our foremost problem in agriculture is to provide irrigation facilities.  The loan waiver scheme will not help us in enhancing foodgrain output.  So, the Government of India should understand its responsibility and desist from playing with our future.  We should make long-term as well as short-term plans for agriculture.  For example, the water level in Bundelkhand has gone down considerably.  There are at least seven rivers in the region which wreak havoc during monsoon season.  If we  build smaller dams on these rivers, our water related problems in Bundelkhand will be solved.  But the Government seems to take more interest in cities where metro is being provided, roads are being constructed and  widened, but towards the countryside it is not giving any attention.  

 The Government of India has proposed to open seven mega thermal power plants but none of them is going to be opened in Uttar Pradesh and Bihar.  It shows the discriminatory attitude of the UPA Government towards the States which are not being ruled by their allies.  

 So, this Budget does not focus on the common man.  It rather focuses on Sensex and the corporate world.  India is the only country in the world where three crops can be grown in a year.  So, we should give top priority to agriculture.  There is no meaning of Independence unless the Indian Budget becomes agri-centric.  Today our farmers, who are our 'andatas', seem to be on the verge of starvation.  Therefore, our agricultural policy should be formulated and implemented in such a way so that it proves in the interest of farmers.

 SHRI ARJUN RAM MEGHWAL:  As per an agreement signed with the States last year, the CST should be reduced to zero in this Budget which did not happen.  Therefore, the CST should be made zero.  The small scale industry sector is the backbone of our country.  There used to be an excise duty exemption of Rs. 3 crore on the products of these industries which has subsequently been reduced to 1.5 crore.  I request the Government to restore the earlier provision in this regard.  I also request the Government to think seriously on the issue of downsizing of the Government so that the tax structure is not be overburdened.  Even the simplification of Kisan Credit Card has not been undertaken.  There should not be repetition of the initial formalities when the farmers go for renewal of their Kisan Credit Cards.  It is because of this, the farmers of Rajasthan, especially in my constituency face a lot of problems in getting their Kisan Credit Cards renewed.  There renewal takes normally four to five months.  I request the Government to solve this problem at the earliest.  I also request the Government to take steps to make the Saral Form of Income Tax really Saral so that the income tax payees can reap its benefit.

 Today bio-diesel is becoming more and more important.  There are lot of large chunks of barren land in Rajasthan where Jatropha plant can be grown.  While presenting her Rail Budget, hon. Minister had stated that a Land Bank of all barren land pertaining to the Railways would be made.  My suggestion to the hon. Minister is that she should go for the Jatropha plantation on all such barren lands.  The gangmen of railways can take care of those lands.  This will provide bio-diesel to the railways and also augment its income.  

Rajasthan is rich in handicrafts.  There is a long pending demand of all the craftsmen that a Handicraft Cluster should be allocated to Rajasthan. So, I request the Government to provide a Handicraft Cluster for Rajasthan as well.  There is a long pending demand of the people of Rajasthan to have a different tax pattern or a separate package for desert areas so that the industrialists who want to invest there can also get some benefits.  I, therefore, request the Government to provide tax relief to desert areas on the lines of hilly areas so that the industrialists could come and invest there.

 Promotion of the Self-Help Groups has also been envisaged in this Budget.  This is indeed a noble objective for which the Government has stated that almost 50 per cent of our women folk will be attached to these groups in the next five years.  They will also be linked up with the banks.  But I would like to know as to how this Government is going to fulfill this objective?  In this regard, I request the Government that if at all they are serious in this regard, they should nominate the officials of reputed NGOs pertaining to women as members in the State level bankers' committee so that the Self-Help Group of women could be taken care of.  There is also a mention of unorganised sector in this Budget.  But I am amazed to find that the 'growth pole scheme' meant for unorganised sector has nowhere figured in this Budget.  I request the Government to revive this scheme.  This will augment the cluster of handicrafts functioning in the country.  I also request the Government to waive off the meagre loan taken by small handloom weavers in Rajasthan from District Industrial Centres so that they can avail new loans.  

 ^*SHRI N.S.V. CHITTHAN: 

 SHRI GORAKHNATH PANDEY:  Agriculture, which is the backbone of our country, has not been paid much attention in this Budget.  The basic necessities of our agriculture are fertilizers, seeds and irrigation.  These inputs are not available to our farmers on time.  Similarly, attention has not been paid in this Budget towards compost fertilizer, nor any encouragement is there to promote use of bio-fertilizer.  The Government also failed to give adequate attention towards dairy development.  Not only that attention towards providing adequate irrigation facilities to our farmers is also lacking in this Budget.  Further, there is no mention of interest free loan to the farmers.

^* Please see Supplement.

 The Sarva Shiksha Abhiyan should also include primary, secondary and higher secondary education.  The hon. Minister has not paid much attention towards this as more than 72,000 vacancies of teachers are yet be filled in.  There is also a provision to open 6000 model Schools for which a provision of Rs. 350 has been made in this Budget which is a very negligible sum.  Similarly, the education of girl child is equally important because if a girl is educated, the entire family gets educated.  The hon. Chief Minister of Uttar Pradesh has got to be commended for the efforts she has made to impart education to girls in the State.  But the hon. Minister has not paid due attention towards this.  Even a provision of Rs. 60 crore for the construction of girl hostels seems to be a very negligible sum.  A provision of Rs. 827 crore has been made in this Budget for opening of new Kendriya Vidyalayas but Uttar Pradesh, which is the biggest State in term of population, has not been sanctioned any Kendriya Vidyalayas.  I request the Government to kindly open a Kendriya Vidyalaya in every district of Uttar Pradesh.  I am of the firm opinion that poverty, illiteracy and unemployment in villages cannot be rooted out unless and until the Government pay adequate attention to fulfill the basic necessities of our farmers.  It will be a distant dream if agriculture is not given its due importance.

 The MPLAD fund being given to us at present is very inadequate.  In the present circumstances it is difficult to get even minor works done in all our five assemblies constituencies.  I, therefore, request the Government to enhance the MPLAD fund from the present Rs. 2 crore to Rs. 10 crore so that we, the MPs can fulfill a small obligation for our constituents.  This will indeed go a long way in the development of our country.

 DR. KIRIT PREMJIBHAI SOLANKI: A period of sixty years is more than enough for developing any country.  I am of the opinion that during the last fifty years of Congress rule this country has not developed to the level as it should have.  Even the last two Budgets which this UPA Government presented seem to be directionless Budgets.  There is a huge gap in the income and expenditure in this Budget.  I do not know as to how this Government is going to bridge this gap?  If the Government is committed to attain its objectives then it seems that they will have to borrow money from some financial institutions.  If the Government herself borrows money where from our farmers will borrow money?  Therefore, this Budget is not a common man's Budget.  It has been made keeping in mind the interests of a few.  Even the farmers are not getting proper remunerative price for their produce.  Whenever they come forward to sell their produce, the middlemen corner most parts of its profit and our farmers remain poor.  How it can be a Budget for the Aam Aadmi?  This Budget is directionless and full of illusions.  The tax imposed on the cooperative banks should be withdrawn.  The condition of gem and diamond workers is very miserable in Gujarat.  No provisions have been made for their welfare in this Budget.  The Sardar Sarovar Narmada Priyojana of Gujarat has not been declared a national project.  The Gujarat Government has done commendable work in the field of agriculture and has brought a second green revolution.  The Central Government should take feed back from the State Government and the way this scheme is being run in Gujarat should be implemented through out the country.  One of our colleagues has urged to increase the MPLAD fund to Rs.10 crore.  I support it.  The Members of Parliament have to pay visits within their Parliamentary Constituencies also.  They should be provided vehicles for it.  Nothing has been done for the poor in this Budget.  The population of SCs and STs is around 21 percent.  The provision made for them in this Budget is not sufficient and should be increased.  A special provision should be made for the children suffering from cerebral palsy. 

SHRI HAMDULLAH SAYEED: I would like to congratulate our hon. Finance Minister and also the UPA Government for giving an aam aadmi Budget, and the Finance Bill.  The Finance Bill deals with the ways in which the Government of India generates revenue for itself.  There is a marginal relief to the individual income tax payers, ladies and senior citizens in the Finance Bill.  In this Finance Bill, the 10 per cent surcharge has been abolished, which is a great relief to all the income tax payers in all the categories.  As regards wealth tax, now it has to be paid only when someone owns a wealth of Rs.30 lakh and above.  As regards gift tax.  If it is below Rs.50,000, then one is exempted.  If the gift has been received by the recipient in marriage or by virtue of will or by virtue of inheritance, then that is exempted.  Previously, Section 80 was confined to the interest on loan for higher education in the professional courses.  Now, Section 80(e) has been widened to benefit the weaker sections of the society and students.  Now, all vocational courses are exempted from interest.  As regards Section 80 (d), it talks about medical expenses and the physically handicapped dependants.  Now the ceiling limit has been raised from Rs.75,000 to Rs.1,00,000.  It is a major relief.  The new Pension Scheme will now benefit the older generation also.  There is 144 per cent increment in the NREGA, a record Rs.39,000 crore has been allocated only for this scheme.  It will give employment to the unemployed youth of the country.  A sum of Rs.25 crore has been earmarked for the Aligarh Muslim University to set up campuses at Murshidabad and Mallapuram districts.  It is again a great relief for the minorities.  When we talk about simplifying the taxation process, the Form Saral-2 has been introduced.  Keeping the security aspect in view, this Unique ID plan has been introduced.  The smart card programme will be benefiting the people belonging to below poverty line category.  In the agricultural sector, the interest on loan to farmers has been reduced by one per cent which is a marginal relief for the farmers.  I come from Lakshadweep constituency.  It is an economically and socially backward area.  I would request the UPA Government and the hon. Finance Minister to take extra care and cautions with regard to Lakshadweep Parliamentary Constituency.

SHRI RADHA MOHAN SINGH: Unless there is balanced development in the country, the equilibrium of development will be disturbed.  If attention is not paid towards it properly then the situation in the coming days will be more serious.  More than 70 percent people in the country live on agriculture and today they are affected badly.  Water for irrigation is not available.  Unless the farmer makes development like an industry the country cannot progress.  I had heard that the farmers who have taken loans from the moneylenders, their loans would be waived off.  I would like to know as to whether the farmers who have taken loans from the moneylenders in Uttar Pradesh, Bihar and Madhya Pradesh would also be taken into consideration?  The Gram Pradhans were given financial powers during the tenure of Shri Rajiv Gandhiji and the Gram Pradhans got the development works done in their villages.  Today the condition of the Member of Parliament is not even equal to that Gram Pradhan.  No attention is being paid towards any one of his proposals.  Therefore, I urge that this MPLAD is very unfortunate for the Members of Parliament, it should be withdrawn and instead of it good proposals of the Members of Parliament should be taken into consideration so that he may get something good done for the people of his constituency.

SHRI M. KRISHNASSWAMY: The hon. Finance Minster has given a balanced Budget emphasizing on inclusive growth.  The Budget has taken into consideration the fall in growth rate and the impact on the social sector.  He has given emphasis on infrastructure growth also.  There is an increased outlay for important flagship schemes.  Under the NREGS, Government has provided employment to over 4.47 crore households in the previous fiscal.  This Scheme is extraordinarily appreciated by one and all in rural areas.  The outlay for the NREGS has been increased by 144 per cent.  Through the agriculture debt waiver scheme, we have waived about Rs.70,000 crore of agriculture loan.  The condition of agriculturists is very bad.  Their condition should be improved.  The rate of interest should be reduced.  If anybody pays installments regularly, there should not be any interest at all.  There is a 45 per cent hike for Bharat Nirman Programme; a hike of 63 per cent for Indira Awaz Yojana; and allocation of Rs.2,000 crore for Rural Housing Fund and National Housing Bank.  Besides, there is a hike of 59 per cent in the Pradhan Mantri Gram Sadak Yojana.  The Government has sanctioned Rs.500 crore for rehabilitation of Internally Displaced Tamils of Sri Lanka, which is a welcome step.  There must be some monitoring body so that the students, who apply for the loans, can get the loans to continue their studies.  The age of Senior Citizens should be lowered to 60 years from the present 65 years so that they can get all the benefits under deposit schemes, railway benefits. Etc.  It is a welcome decision to abolish the surcharge of ten per cent on individual income of more than 10 lakh.    It is a welcome step to abolish Fringe Benefit Tax.  In regard to section 13-B relating to voluntary contribution received by electoral trusts, if the donation is given to the political party, hundred per cent exemption also can be given.  While the excise duty on branded jewelllery is reduced and customs duty on import of gold is increased, ultimately the cost has to be borne by the purchases.  So, the Government should also consider this aspect of excise duty on gold items.  I must congratulate the hon. Minister of Finance for reducing the customs duty on certain life saving drugs.  The hon. Minister of Finance has increased the wealth tax exemption limit from Rs. 15 lakh to Rs. 30 lakh.  It is a welcome step.  Clause 113 of the Bill seeks to amend section 13 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002.  I would urge upon the Government to keep monitoring of the whole situation, along with regulatory authority like SEBI.  There is a proposal to implement Goods and Services Tax (GST) for Central GST and State GST from April, 2010. The hon. Minister should convene a meeting of all the Finance Ministers from the States for a discussion with the stakeholders and a smooth transition.  I would please with the Government that instead of tinkering with the provisions of the Direct Taxes every year, there should be a long-term fiscal policy.  The Government should make further simplification of all the taxes.  Coming to education, I would say that there are so many new colleges which are being built now.  I want to ask where is the money coming from?  How do they get it?  How do they build up building?  Where is the Income Tax Department?  Why not the Income Tax Department check those things?  I would say that it is a very extraordinary good Budget and I support the Finance Bill wholeheartedly.

SHRI KHAGEN DAS: After 62 years of Independence, 80 per cent people of India are poor as per international norms.  "Global Hunger Index, 2008" of International Food Policy Research Institute says that in India 20 crore of people go to bed every day with empty stomach.  In another Report, it is said that 250 million people in India are under-nourished.  While, on the other hand, during the four years of the first UPA Government, the number of Indian billionaires in dollar terms increased.  This year's Budget is also tilted towards the khas Aadmi at the cost of the Aam Admi.  May I ask in whose interest the Union Government has been spending the people's hard earning paid through their noses in the form of taxes?  In the Budget Speech, no thrust has been given for realization of pending tax revenue.  The people have suffered from continuous price rise of all essential commodities.  These commodities have gone far beyond the reach of Aam aadmi.  I strongly demand for a reduction of retail prices of petrol and diesel by customs and excise duties on oil.  The Government should ban future trading in all essential commodities.  Stringent action should be taken against hoarding of essential commodities.  To ensure food security, the Government should reintroduce the Universal PDS.  The Government should strengthen the grain allocation to States under the PDS.  The Government should strengthen the Food Corporation of India and curb procurement of food grains by private corporate houses and multinational companies.  The Government should reverse the flawed criteria in identifying the BPL families.  The House should be informed about the pious intention of the Government about unearthing of black money.  The Central Government has ignored the acute financial crisis faced by State Governments on account of meeting the additional expenditure due to the revision of pay scales.  Today, half of India's women are anaemic and 40 per cent of children under the age of three years are underweight.  There are about six lakh anganwadis where as the complete coverage of 14 crore children in the country require 17 lakh anganwadis.  I would like to know the complete planning of the Government in this respect.  As far as NREGA is concerned, if hike in wages is taken into account, the real increase in the allocation under it is almost nil.  It is a blatant treachery to the rural poor.  As far as rural housing is concerned, the allocation is less than that of the previous year.  North-East is a backward region.  It is unfortunate that the Union Finance Minister, in his Budget Speech, has not felt necessary to address the needs and aspirations of the people of the North-Eastern region.  I demand a special dispensation for the North-Eastern region.

SHRIMATI MEENAKSHI NATRAJAN: I wish to draw the attention of the Government towards the problems being faced by the farmers particularly the opium cultivators in my parliamentary constituency.  The farmers are granted licences and lease to cultivate opium.  Every year, in the month of August the policy on opium is formulated on the basis of which the farmers have to cultivate the opium crop.  I want to request the Government that whenever a policy on opium is chalked out, the opium farmers should be involved in the process so that their problems and challenges could be addressed.  On being leased, the farmers start their opium cultivation.  However, some times they fail to meet the target fixed due to certain reasons.  The opium crop is haunted always by the crisis of natural calamities and the diseases.  I want to urge the Government that at the time of policy formulation, the farmers should be granted lease for ten 'Ari' each so that the big farmers could also benefit thereby.  The opium crops are sometimes ruined by the natural calamities. In view of such circumstances, average should be worked out taking into account the three crops.  I want to give a suggestion that an Opium Research and Training Centre should be set up for the benefit of opium cultivators so that the farmers can get training and are able to deal with the natural calamities and diseases afflicting the opium crop.  The Government procurement price for opium has been unchanged for years.  I want the support price for it to be increased to Rs. 5,000.  The result for the transparency on opium Weighing Centres and the final test should be communicated to the farmers in writing the same day.  Then only justice would be done to the farmers.  This problem relates to the lakhs of farmers who are cultivating opium in a legal way on the licensed leased land in 12 districts.  I hope that the interests of the farmers would be taken into account while formulating a new policy on opium.

SHRI ADHI SANKAR:  We are spending more than Rs. Ten lakh crores for the development of our country.  However, even one per cent of the developmental works is not being suggested or identified by the Members of Parliament.  Five years back, the amount given to a Member of Parliament for constituency development was Rs. 2 crores per year.  Even today, we are getting the same amount by way of MPLAD fund.  So, I would request the hon. Finance Minister to increase this fund substantially.  The total amount allocated under MPLADS should be one per cent of the total expenditure of Rs. Ten lakh crores.