Budget 2020: Acceleration of privatisation to boost profit of capitalists

The budget has planned to escalate the scale of privatization and disinvestment. Some of the privatization plans announced are:

  1. In 112 districts, private medical colleges will be set up on Public Private Partnership (PPP) model and district hospitals will be attached to them.
  2. Five new smart cities will be developed under the PPP mode.
  3. Creation of warehouses for agricultural products will be carried out through PPP model.
  4. At least one major existing port will be privatised.
  5. Smart electricity meters will be installed to prepare the ground for large-scale privatisation of electricity distribution as they would make it possible for consumers to choose the supplier as well as the rate.
  6. The balance share-holding of 46.46 percent of the Central Government in IDBI Bank will be sold. Government has already sold its 51 percent share-holding in IDBI Bank in 2018-19.
  7. The plan to list on the stock market and begin disinvestment of 100% government owned LIC is of serious concern to people. LIC not only manages huge amount of savings of people but is also one of the largest investors in both public and private sector companies. The future of every individual who puts in his life savings in the insurance company will be at stake once it is privatised. Its privatisation is being opposed by All India Insurance Employees’ Association as well as BMS which is affiliated to the BJP.
  8. Through the sale of shares of IDBI and LIC, the government has planned to earn Rs 90,000 crore. A further Rs. 1,20,000 crore will be earned through the planned sale of Air India, BPCL and other public sector units and divestment of shares.
  9. The step by step privatisation of Indian Railways is being accelerated. More private trains like Tejas will be run. Refrigerated Kisan Rail for transport of perishable goods will be run through PPP model. The redevelopment of New Delhi station and Mumbai’s CSMT  terminus will be offered to private players within next three months. Bids for running 150 private trains will be finalised during 2020-21.

Privatisation has been pursued despite strong opposition by workers due to anticipated loss of jobs.  Consumers of public services are opposing privatisation as it would make many services out of their reach. Both workers and consumers are asking what right government has to hand over assets built with public money for private profit without asking people. They are demanding that government must fulfil its basic duty to provide essential services to all at affordable prices. The privatisation of essential services like electricity, water, sanitation, transport, education, health would deprive large number of people of these services and make them unaffordable to many more. 

Despite the opposition of people, privatization has been accelerated in the last few years as the capitalists’ profits have come under pressure. While the sale of assets built with public money has been going on since the policy of globalisation through liberalisation and privatisation was launched in 1991, the State is opening up newer and newer areas for private profit. The privatisation of strategic areas like defence production, petroleum products, insurance, railways, electricity distribution is being pushed.

When capitalists are not able to produce and sell more to increase their profit due to lack of purchasing power of people, acquiring public sector companies, partly or wholly, is an easy way of increasing their profit. This is the reason for big emphasis on privatization and disinvestment in the budget.

Tag:   

Share Everywhere

budget    Feb 16-29 2020    Voice of the Party    Economy     Privatisation    Rights     2020   

पार्टी के दस्तावेज

Click to Download PDFInterview with Comrade Lal Singh, General Secretary of Communist Ghadar Party of India

by Comrade Chandra Bhan, Editor of Mazdoor Ekta Lehar

(Click thumbnail to download PDF)

History of Ghadar PartyA Presentation of Communist Ghadar Party of India

100 years ago Ghadar Party was formed by Indians in the US.It was historic milestone in our anti-colonial struggle.

The goal of this party was to organise a revolution to liberate our motherland from British servitude and establish a free and independent India with equal rights for all. It believed this to be the necessary condition for our people to hold their heads high anywhere in the world.

(Click thumbnail to download PDF)

Call of the Central Committee of Communist Ghadar Party of India, 30th August, 2012

Working class representatives from all over the country are gathering on 4th September, at a time when a titanic struggle is going on in our country. The struggle is between the majority of toiling and exploited people and a minority of exploiters. It is between the majority whose labour expands wealth and the minority who enjoy the fruits of wealth creation on the basis of their private property and positions of power.

(Click thumbnail to download PDF)

Call to the Working ClassDefeat the program of privatisation and liberalisation!

Fight with the aim of establishing workers’ and peasants’ rule!

Call of the Central Committee, Communist Ghadar Party, 23 February, 2012

(Click thumbnail to download PDF)

Necessity for the working class to take political powerThe initiating speech, at the working class conference on the Way Forward held on 23-24 December 2011, was made by comrade Lal Singh, on behalf of the Central Committee of the Communist Ghadar Party of India. The document entitled the necessity for the working class to take political power has been edited based on the discussion in the conference and is being published according to the decision the Central Committee.

(Click thumbnail to download PDF)

Power to DecideVoice of the Communist Ghadar Party of India on the Power to Decide

This publication contains three statements issued by the Central Committee of Communist Ghadar Party on 1st, 18th & 28th Aug, 2011.

(Click thumbnail to download PDF)