`Samadhan' scheme announced by Union finance minister Yashwant Sinha is another name for VDIS: Cong-June 04,1998

`Samadhan' is another name for VDIS: Cong

/ BSCAL June 04,1998

The Congress yesterday came up with more criticism against the Union budget, and said the `Samadhan' scheme announced by Union finance minister Yashwant Sinha was just another name for the earlier Voluntary Disclosure of Income Scheme (VDIS).


Without naming AIADMK leader J Jayalalitha, the party wondered if the scheme would apply to those against whom prosecution had been launched, or was likely to be launched. The scheme has been viewed in Opposition circles as one intended to bail out Jayalalitha from the various cases relating to financial irregularities.

Congress economy cell secretary Jairam Ramesh alleged that at a time when the economy was moving away from the lobby-influenced system of fixing import and excise duties, Sinha's budget had proved a setback. He noted that there were now 12 rates of customs duty and 9 rates of excise duty, while exemptions had been given in large numbers.

"The Congress has always believed in India's manufacturing base, while the BJP has always been a trade-oriented party. That is why perhaps the finance minister has exempted traders from the levy of the special additional duty on imports. This will hit domestic manufacturing", Ramesh said.

Recalling the levy of 8 per cent special additional duty on specified imports, he said this will in fact turn out to be between 12 per cent and 15 per cent, because elsewhere in the finance bill, it was stated that the duty would be applied on the aggregate of the assessable value, the basic customs duty, the special customs duty and the additional duty of customs.

This, he said, would be not only inflationary, but would also hurt the interests of farmers. This should also be seen in the backdrop of the 15 per cent depreciation of the Indian rupee vis-a-vis the dollar over the past year.

Thus, he said, sections of Indian industry were now being offered 30 per cent additional protection.

"We demand an inquiry into the petrol price fiasco. Who pocketed the money fleeced from hapless consumers? In our view the confusion was deliberate.

Moreover, the minister claims that the money raised from petrol hike will go entirely into the National Highways Authority of India.

The hike is expected to raise Rs 790 crore, while the allocation for NHAI is shown in budget documents as Rs 500 crore. Where is the balance Rs 290 crore" Ramesh asked.