Policies have widened rich-poor gap

In a clear indication of the strident stand that the Left is likely to take on the Budget, CPM distanced itself from all claims of achievements made by the government in President Pratibha Patil's address to a joint session of Parliament on Monday.

CPM leader Sitaram Yechury said Patil's speech made wrong claims about inclusive growth. Instead, he said, government policy was creating two Indias — a shining India and a suffering India.

Yechury also criticized the President's speech for not referring to women's reservation. He said Patil's optimism on nuclear deal was just a reiteration of the government's position.

"Dispute between Left and government stands. There is a written agreement between us that the result of IAEA talks will be discussed in the UPA-Left committee," he added.

Yechury claimed that on the one hand, 36 Indian billionaires constituted 25% of India’s GDP while on the other, 70% of Indians had to do with Rs 20 a day.

"A farmer commits suicide every 30 minutes. The gap between the two Indias is widening," he said, criticizing even the targets Patil spoke about.

"It is an erroneous target. All these are staggered increase over the next five years. Unless drastic measures are taken, the gulf between suffering and shining India will increase," he said.

Yechury said much of the suffering was in rural India. He said the President claimed that rural credit had doubled, but two-thirds of farmers did not have access to institutional credit. He added that lack of access had resulted in farmers relying on moneylenders who charged exorbitant interest rates, which led to farmers committing suicide. "We demand spread of rural credit at 4%. Unless it is done urgently, agrarian distress will continue," he said.

Yechury also did not think much of the 50% increase in minimum support price of wheat and 33% increase of paddy. "MSP is still Rs 200-600 less than what the government pays in international market. It is not in consonance with reality," he said.