Swadeshi Jagaran Manch (SJM), affiliated to the RSS, has praised the Union Budget tabled on Monday in Parliament but raised red flags on the government’s disinvestment proposals with regard to government-owned enterprises and rise in Foreign Direct Investment (FDI) in the insurance sector.
Convenor of SJM, Ashwani Mahajan said the organisation “was appreciative of the government for its enhanced and judicious spending for the survival of the people who their jobs or faced income losses, by providing free food and other essential steps for their livelihood, to bring the economy back on track both in rural and urban areas.” Mr Mahajan also praised the government for allocation of more funds for infrastructure, and efforts to revive industry.
Reservations were, however, expressed on the disinvestment proposals and raising of FDI limits in insurance.
“The announcement of carrying out disinvestment of Bharat Petroleum and Chemicals Limited (BPCL), Air India, Shipping Corporation of India, Pawan Hans, Bharat Earth Movers Limited (BEML), manufacture of rolling stock for Metro etc is a cause for concern. The strategic disinvestment of the enterprises created by tax payers money is not right,” said Mr. Mahajan. He added that sale through equity route would a “better and more transparent option.”
“On the other hand, raising the FDI limit in the insurance sector from the present 49% to 74% is also worrisome as increasing foreign dominance in the financial sector is not a prudent step. This increases the foreign dominance over the financial resources of the country and impacts the development of the country,” he said.
