Communists'
move against FDI
New
Delhi: The politburo of the CPI-M held a meeting on
Sunday to prepare its future course of action on the budget
proposals, especially on the hike in foreign investment
in telecoms, insurance and civil aviation. The left-backed
Congress-led UPA government earlier in the week unveiled
billions of dollars in spending for poor in an expansionary
first budget that taxed the rich but did little to tackle
a nagging deficit. Union Finance Minister P. Chidambaram's
cautious budget was less inflationary than some analysts
had feared but, as expected, included no major measures
to cut the worrying fiscal deficit, seen as a challenge
to sustained high economic growth. The budget raised foreign
investment caps in the telecommunications, insurance and
aviation sectors and increased- but did not specify-investment
in state power and telecom firms. It also reduces tariffs,
increases farm sector credit and plans a new container port
terminal in the south. The Left Parties had said it would
"take the issue before the people and mobilise opinion".
The union budget increases spending in the current fiscal
year by 100 billion rupees over the previous government's
interim budget in February, largely to deliver the Congress-led
coalition's promised "new deal" for rural India, which brought
it to power.
Arunachal
Congress MLAs demand removal of Governor