PF interest rate should have been hiked: CPI(M)

CPM's Anil Biswas also said that the hike in FDI cap on telecom, civil aviation and insurance sectors was contrary to the CMP.

Giving a mixed reaction to the UPA government's first Union Budget, CPI(M) Politburo member Anil Biswas said on Thursday that the Finance minister should have proposed a hike in the interest rate of provident fund and special deposit schemes, like PPF, to fulfil expectations of the people.

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"The UPA government should have kept in mind that our party wanted it to strictly follow the Common Minimum Programme (CMP)," Biswas said, adding that 'some' of the expectations had been fulfilled, "but not all."

Stating that it should be analysed if the interim Budget of the previous NDA government had caused impediment to the preparation of the present Budget, the CPI(M) leader said that the interest rate on central loan for the states had been reduced to nine per cent from 10.5 per cent "which should have been brought down to six per cent as per our demand."

Biswas said that the hike in FDI cap on telecom, civil aviation and insurance sectors was contrary to the CMP.

"Here too, our expectations have not been fulfilled," he said, adding that new decisions in the small-scale sector would create a 'crisis'.

Biswas, however, was happy that steps to improve the functioning of the health and education sectors had been taken as per the CMP.

To a question, the CPI(M) leader said that his party would 'go to the people with the issues of the UPA government, which are not in consonance to our outlook.'