AIBOC issued its circular No.
6 dated 04.02.2013 on Pre-Budget Consultations. We are placing the same here
for our readers.
CIRCULAR NO.6 04.02.2013
TO ALL AFFILIATES/MEMBERS:
PRE – BUDGET CONSULTATIONS
The Hon’ble Finance Minister,
Govt. of India, has commenced the pre-budget consultations with the trade
unions, captains of industry etc. We have given our suggestions on various
issues of annual budget. Our suggestions cover wide range of budgetary
proposals including direct tax on salaried persons, employment generation and
poverty eradication programmes. Our main thrust is on retaining the Public
Sector character of the nationalised Banks.
We have annexed a copy of the
letter addressed to the Hon’ble Finance Minister, Sri.P.Chidambaram and the
contents of the letter are self-explicit.
With greetings,
Sd/-
(D.S.RISHABADAS)
GENERAL SECRETARY
No. 1454/14/12 Date: 04.02.2013
To,
Sri. P.Chidambaram,
Hon'ble Finance Minister,
Government of India,
NEW DELHI.
Respected Sir,
PRE BUDGET CONSULTATIONS
We have been submittill9 our
representations, Requesting to invite us for the pre- budget consultations and
give us an opportunity to present our views on the various issues affecting the
Banking Industry. We as a trade union of officers in the Banking Industry
representing more than 2.50 lac officers are not extended the invitation for
the pre-budget consultations. We are not affiliated any political party. While
we once again request you to invite us for the pre-budget exercise, we wish to
make the following suggestions, which kindly take note of at the time of
preparation of the annual budget. We also would like to urge you to hold post -
budget discussions with the trade unions, including us, as is held with the
corporate Associations / Federations.
We express our serious
concerns about the situation of the country's economy in the present global
scenario. The country is reeling under high level of inflation leading to
spiraling prices, huge job losses, poverty, mounting unemployment, agrarian
crisis, which have attained menacing proportions. We observe that, most of the
gains of DGP growth are being wholly garnered by the corporate, employers and investors
and the common people of the country are left high and dry. The realistic
growth of the economy is reflected in the GDP growth along with employment
growth. Hence, we urge that, the ensuing budget should be people oriented
addressing the issues of poverty, social infrastructure, unemployment, agrarian
crisis etc.
Our views and suggestions on
the various issues confronting the nation, the Banking Industry and the
officers, working in the Banking Industry are as follows and we request you to
take -up with all seriousness so as to find appropriate reflection in the
budget to be presented to the Parliament.
ECONOMIC ISSUES:
(a)
Effective measures should be taken to curb the
spiraling price rise and arrest the inflation.
(b)
Tax, duty, cess on petroleum products should be
rationalized as a part of anti-inflationary measure.
(c)
Speculative forward trading in commodities
should be banned.
(d)
The public distribution system should be
strengthened and universalized/to take care of the poor people.
(e)
In view of huge job losses, and the mounting
unemployment problem, the recruitment in Government Departments, Public Sector
undertakings and autonomous institutions, should be encouraged.
(f)
All the stimulus packages including extension of
concessions, tax holidays to the Corporate bodies, must be made conditional to
ban retrenchment, layoffs, closures, wage cut, Voluntary Retirement /Separation
Schemes and should be to create more and more employment opportunities.
(g)
The massive work force engaged in Integrated
Child Development Scheme (ICDS), Guest Teachers, Shiksha Mitra, Vidya
Volunteers, Mid-Day Meal Scheme, should be regularized. The workers engaged in
the Accredited Health Activities (Asha) should be brought under the cover of
statutory minimum wages and social security.
Universalisation
of ICDS is done as per the directions of the Supreme Court, by making adequate budgetary allocations.
(h) The coverage and scope of MGNREGA
should be extended to urban areas as well, and employment
should be guaranteed for a minimum period of 200 days with guaranteed statutory wage.
(i) Steps
must be initiated for removal of all restrictive provisions based on poverty
line in respect of
eligibility coverage of the schemes under Unorganized Workers' Social Security Act 2008 and allocation of adequate resources
for the National Fund for Unorganized Workers
(as fixed percentage of GDP) to provide for Social Security to more than 43.5
crore unorganized sector
workers including the contract, casual and migrant workers’.
PUBLIC SECTOR UNDERTAKINGS INCLUDING PUBLIC SECTOR BANKS.
(a)
Investment by the Central Government must be
increased for creation of assets and decent employment. For the purpose, the
Public Sector Units Undertakings should be strengthened and expanded.
Disinvestment of shares of Public Sector Undertakings should be stopped
forthwith and their huge reserves and surplus of more than Rs.6 lac crores
should be used for rehabilitation of Sick Central Public Sector Undertakings
and for modernization and expansion of other Central Public Sector Undertakings.
It is pertinent to note that the CPSUs are having average debt equity ratio of
0.75: 1 as compared to 2.3:1 in Private Sector. Public Sector undertakings
should be allowed to have more access to debt market of Banks and Financial
Institutions instead of resource mobilization in equity market, through
disinvestment.
(b)
The financial sector, including Banks and
Insurance, which stood the test of time even the recent global melt-down,
should be encouraged, enlarged and improved, instead of imposing the so called
reforms, which will affect them and weaken their Public Sector Character.
INCOME TAX EXEMPTION LIMIT:
Income Tax Exemption ceiling
for the salaried persons should be raised to Rs.3.00 lacs and the fringe
benefits like housing) furniture, medical and) educational facilities should be
exempted from the income tax net in totality.
Tax on perquisites for Bank
officers is not justified as the benefits are extended as part of welfare
measures.
TAX THE RICH FOR RESOURCES MOBILIZATION
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 as at present the overwhelming
majority of the population is subjected to indirect taxes that constitute 86%
of the revenue.
Concrete steps must be taken
to recover huge accumulated unpaid tax arrears which has already crossed Rs. 3
lac crores 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 of around Rs. 2 lac crores on direct and corporate tax account
should not be allowed to continue.
UNEARTH ACCUMULATION OF HUGE BLACK MONEY
Effective measures should be
taken to unearth huge accumulation of Black money in the economy including the
huge unaccounted money in tax heavens abroad. This money should be provided for
expanding the social security measures and poverty eradication programmes.
THE NPAS IN THE BANKING INDUSTRY
Concrete measures, including
effective legal remedies, must be expedited for recovering the huge
Non-performing Assets of the Banking System from the willfully defaulting
corporate and business houses. Defaulters should not be allowed access to fresh
loans. The names of willful defaults be published in leading news papers. The
individual assets of proprietors or directors be attached for default of
corporate loans.
STOP CONTRACT LABOUR AND OUTSOURCING.
Contractualisaiton of labour
and outsourcing of work of permanent nature be allowed. The contract labour and
outsourcing of work is resulting in exploitation of the labour and payment of
wages and benefits to such workers is very poor as compared to the wages and
benefits available to the regular workers of the industry/establishment. The
third party mediation in banking such as Business I Facilitators or business
correspondents is avoided. The bank business be carried out by permanent staff
of the Bank.
We hope that the suggestions
made above will receive your serious consideration and will find appropriate
reflection in the budget to be presented to the Parliament. We once again
request you to invite us for the post -budget consultations.
Thanking you,
Yours faithfully,
Sd/-
(D.S.RISHABADAS)
GENERAL SECRETARY
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