Budget lacks direction, fails to stimulate demand: Amit Mitra

Describing the Union budget asconfusing and directionless, West Bengal Finance Minister AmitMitra on Monday said that it has failed to stimulate demand inthe economy.Mitra also criticised the budget claiming thatsufficient funds have not been allocated to West Bengal forfighting the COVID-19 pandemic and mitigating the damagecaused by cyclone Amphan.There is not a speck to stimulate demand in theeconomy as seen in the budget.

Describing the Union budget asconfusing and directionless, West Bengal Finance Minister AmitMitra on Monday said that it has failed to stimulate demand inthe economy.

Mitra also criticised the budget claiming thatsufficient funds have not been allocated to West Bengal forfighting the COVID-19 pandemic and mitigating the damagecaused by cyclone Amphan.

''There is not a speck to stimulate demand in theeconomy as seen in the budget. It does not have anymacroeconomic rationale and directionless. The only mainobjective is to sell family silver,'' Mitra said at a virtualnews conference.

He said that he had written to Union Finance MinisterNirmala Sitharaman to adopt measures which will lead to demandstimulation.

Money should have been given in the hands of peoplelike other countries have done. On the other hand, thegovernment is trying to sell public assets like railways,airports, ports and also announced divestment of two publicsector banks,'' Mitra said.

He also said that the foreign ceiling on equityinvestments in insurance companies has been raised from 49 percent to 74 per cent.

He claimed that devolution of funds till December thisfiscal has been Rs 10,000 crore less for West Bengal and thereis no reflection of that in the budget.

Mitra said that Sitharaman's budgetary pronouncementthat the Centre will provide funds to build 625 kilometres ofroads in West Bengal is ''a big joke'' as the Mamata Banerjeegovernment had already built more than 88,000 kilometres ofrural roads and 5,111 kilometres of highways.

Expressing disappointment that there is nothing in thebudget for MSMEs and the unorganised sector, Mitra said thatagriculture has been put under more stress by imposing cess.