(Released by S. K. Sharma, Vice-President, AICCTU, on behalf of Banking and Insurance Front.)
AICCTU strongly opposes the Modi government move to invoke Section 7 of the RBI Act, which gives special powers to the government to issue directions to the RBI governor on issue of public interest. In the name of public interest Modi government wants the central bank to part with a third of reserve fund - to squander away in the election year. The RBI has reserves worth ₹9.59 lakh crore, and for the first time in history, the Modi government wants to exercise this power.
Invoking of section 7 of RBI Act would be detrimental to national interest. In fact, the economy is in crisis and in an election year the Modi government needs more funds to spend, to attract voters.
India's fiscal deficit touched 95.3 percent of its full year target in the first six months of 2018-19 on the back of lower revenue income and higher expenditure, posing a danger to the fiscal target of 3.3 percent of GDP.
Even the collection of indirect taxes like GST is below par. Against an expected GST collection of ₹1.25 lakh crore, average collection is ₹90,000 crore a month. There is shortfall of ₹50,000 crore on the GST front alone.
Total Income receipt at the end of September 2018 reached only ₹7.09 lakh crore, or 39 percent of the budget estimates of ₹18.17 lakh crore for the financial year. Against a full year target of ₹80,000 crore, the government has till September divested PSU equities worth only ₹15,289 crore.
Modi government is also trying to get additional money from PSUs via special dividends to government. Such a move by the Modi government will destroy the financial and PSUs sector of the country and is deeply against the interests of the people and the country.
AICCTU urges the working class and specially the bank and insurance employees to come forward to oppose such moves and join struggle against Modi government.
We shall fight, we shall win.
