Wednesday, December 28, 2016

DEMONETIZATION THAT BURDENS THE PEOPLE

DEMONETIZATION THAT BURDENS THE PEOPLE.
Narendra Modi’s decision to demonetize Rs.500 and Rs 1000 currency notes came as a bolt from the blue for common man. It disrupted their life as 84 per cent of the total value of currency in circulation was withdrawn. Daily wage-earners lost their income standing in queues; they cut down on milk and vegetables; the cardless poor are turned out from hospitals; petty job works stopped for want of cash; small businesses and trade disrupted.
The impact on rural India is devastating. The demonetization move came in the middle of hectic agrarian activity – that too after two consecutive years of drought – with farmers either wrapping up kharif harvests or sowing rabi crops. Rural India left cashless as 90 per cent villages are unbanked. The peasants are left with no option than go to usurious money lenders. The government after much dithering raised the withdrawal limit for farmers to Rs.25,000, allowed 16-day grace period to pay crop insurance premium and to use old currency noted to buy seeds. But these measures are too little too late to alleviate the rural distress.
The NDA government claimed that the demonetization is aimed at curbing black money, fake notes, corruption and finances to terrorists. Demonetization will have little effect on the black economy is a well- known fact. It is obvious that most of the illegal wealth is not held in the form of currency notes. It will not exceed 5 per cent of the currency, which already found ingenuous means turn into white.
Black money is generated mainly and mainly out of three major types of transactions (i) commodity trading which includes high sea sales – the domestic and international norms to check quality of material and adequacy of pricing is almost impossible to arrest the leakage. These transactions are highly prone to “over-invoicing “ and “under-invoicing “ , especially considering counterfeit documents, shell company shipments, easy financial structured available ; (ii) Non-authentication of Capital deployment – this ensures hiking capital cost of heavy equipment and projects where capital can be flown to a contractor abroad conveniently ; (iii) tax evasion – hushing up financial transactions and evading excise, sales and income tax is another major source of black money. And, none of these can be controlled by “demonetisation “.
In the run up 2014 Lok Sabha elections, Modi had repeatedly claimed that if elected his government would bring back black money from abroad to distribute a sum of Rs. 15 lakh to each and every poor Indian family. Without taking any measure to seal off these loopholes in the system that generates black money, the talk about curbing black money will be nothing more than theatrics. Definitely NarendraModi aims to gain political mileage in the coming assembly elections.
As the costs imposed on the economy becoming evident and as the people are becoming restive with the inability of the government to provide them with cash which they legitimately own, The propaganda machinery of the government, BJP and RSS swung into action propagating that there will be more benefits, some immediate and some in long term, than the difficulties now faced by the people. They claim that Indian economy will soon turn into cashless economy are singing the virtues of such an economy how it could uplift the people from poverty. Another benefit they claim is that as the banks flooded with deposits, they lend more and cut the interests rates that gives an impetus to the economy improving employment.
It’s a only a ploy to dupe the gullible people that India would turn into cashless economy. Nearly 90 per cent of villages have no banks and more than 80 per cent of the people depend upon the cash transactions for their daily life. The talk of a government which cannot even foresee the need for recalibration of ATMs to disburse new currency notes, is at the most laughable.
The money deposited with the banks will soon be withdrawn. But even 10 per cent of them to stay with banks, there will be more liquidity and the banks cut their lending rates, which in turn boosts the economy, claims the supporters of the government. As this propaganda is going on, the Reserve Bank of India on November 26 ordered the banks to park all the deposits they got in the period from September 16 to November 11 with RBI at zero rate of return. This means that the Banks liquidity positions continues to remain precarious. RBI will use to stabilize the foreign exchange market as the foreign portfolio investments started to flow out of the country. The outgo of FPI rose from Rs.4004 crore in 2015-16 to Rs.12,842crore up to November 26 this fiscal year. The remaining will be invested in Government securities, which means that the people’s money is being diverted to cover the budgetary deficit.Knowing well that deposits made by the people in need of exchange for new currency notes would be appropriated through bureaucratic methods, the propaganda machinery is creating false illusions among the middle classes about the declining lending rates and real estate prices.
In contrast, the Modi government assured those who looted the economy that they need not lose their sleep over their ill-gotten wealth. Before the demonetization, it gave an opportunity to them through Income Disclosure Scheme, which asks no questions if 50 per cent of the disclosed income paid as tax. The government got declarations from 64,275 individuals worth Rs 65,250 crore from the scheme. According to IT act, they should have been paid full tax, penalty as 45 per cent surcharge. The declarants were provided with immunity from the law.
Last year, the government had come out with a similar scheme for those holding undisclosed assets abroad. Under this scheme, disclosures were charged with total tax and 60 per cent penalty. This scheme yielded Rs 2,428crore from disclosures of Rs 4,147 crore.
Now after the demonetization the government came out with another disclosure scheme albeit in the name of amendments to IT Act. The latest disclosure scheme –Pradhan Mantri Garib Kalyan Yojana- will allow those depositing money in banned currency notes to enjoy immunity from taxation laws by paying a 50 per cent income tax, comprising 30 per cent income tax, 10 per cent surcharge and 10 per cent penalty, on the undisclosed income. The declarants will have to deposit a fourth of the undisclosed income for four years without interests. These funds will be utilized by the government for poverty alleviation programmes.
A perfect cocktail for money laundering in the name of poor. While allowing those who illegally looted the economy were allowed to go scot free, Modi’s Demonetization is not allowing the people to withdraw their legitimate hard earned money from the banks.
What does it mean? By hook or crook earn black money flouting the laws of land; disclose some of it as you like without any strings; live peacefully to earn more black money until another ‘amnesty’ scheme is announced. This assurance is legalized by amending the IT Act. This may appear strange to a novice, but to those who were veteran observers of Indian polity it reveals that the government of any colour will stand to serve the interests of exploiting class- that is, big bourgeoisie and landlord class in India.

 The declared objectives of curbing black money, fake notes and corruption, along with false propaganda about the notional benefits that will be accrued by the economy are only a disguise to conceal from the people the real intentions – covering up its failure in economic front, bail out of banking system that is facing liquidity crisis, and obtaining political mileage. It is yet another measures to lay the burden of crisis on the backs of people and saving the real culprits – big bourgeoisie, big business, money-launderers etc.  

Sunday, December 18, 2016

STATEMENT OF THE CPI(ML) CC: ALL INDIA CONFERENCE OF CPI(ML) HELD SUCCESSFUL.

STATEMENT OF THE CENTRAL COMMITTEE OF THE CPI(ML): ALL INDIA CONFERENCE OF CPI(ML) HELD SUCCESSFULL.
All India Conference of CPI (ML) held successfull.
The Central Committee of Communist Party of India (Marxist- Leninist) announces that the All India conference of our party has been successfully held. The previous All India Conference was held in 2009 which adopted the fundamental documents of our party. It continued its multifaceted activities basing on these documents. The CC felt that it will help to advance our party’s activities by reviewing this seven-year period and also the unity achieved during this period on the basis of these documents.
During this period we have lost our beloved leader and then General Secretary Comrade KanuSanyal. We have also lost many senior comrades in the CC: Comrades Asit Sinha, Masterji, Surendra Singh Katiyar, Umasankar Singh and Shabbar Hussain. With inspiring and lively remembrances of the departed leaders, the CC organized the All India Conference with the aim of consolidating and strengthening the party and leadership.
This period witnessed the unbridled implementation of the policies dictated by the imperialist financial Institutions and deceit of people through the so-called democratic process of consulting the people. This period witnessed surrender to US imperialism both politically and militarily with all false assertions of being a world power. This period witnessed an intensified loot of national wealth by the MNCs and amassing of the bureaucratic capital by the Indian big bourgeoisie. This period witnessed the further deterioration off living and working conditions of toiling masses of people and constant erosion of all civil and democratic rights of the people. This period saw the aggravation of exploitation and oppression by the ruling classes and resistance from the people.
The All India Conference has been organized to analyse the complex international and national situation in the light of our basic documents and to formulate the tasks emanates from it.
After hoisting the Red Flag, the General Secretary announced the formation of All India Conference forum. The Conference elected a five member Presidium and a six member Steering Committee.
While discussing the document – International and National situation and Our Tasks – the delegates made many suggestions that enrich it. After vivid description of international situation the document concluded that the contradiction between the imperialism and the oppressed nations and people of the world is not only growing, but continues to be the principal contradiction. It is the principal contradiction because its existence and development affects the existence and development of other contradiction including the contradiction amongst the imperialist powers.
After describing the various aspects of the national situation, the document clearly stated that the land to the tiller has attained more importance today and the struggle for land should be waged along with the struggle against imperialism and big bourgeoisie.
The document noted that semi-fascist or fascist type of measures are being taken by the ruling class parties in order to suppress the peoples’ aspirations, demands, agitations and struggles. The main prop for this semi-fascist repression has been the increasing dominance of finance capital. Everywhere it goes, it unleashes exploitation, suppression and oppression.
The people are looking for an alternative, but the Communist Revolutionaries are not in a position to provide leadership to them because of right and left opportunisms, and revisionism and ultra-left sectarianism and adventurism. The oscillation of communist movement in India between these two harmful extremes has led to the weakening of the movement and party. It is largely because of the influence of petty bourgeois class which has to be guarded against as our society is at a stage of semi-feudal and semi-colony. So it is the urgent task to build a united single Bolshevik party. This needs an ideological and political struggle against all wrong trends, firmly adhering to the principles with flexible tactics and continuing the process of unity of Communist Revolutionaries.
The All India Conference approved the policy of united actions with other political parties and organisations on issues affecting the people, being pursued by the CC. The All India Conference adopted a resolution accepting the document along with the many suggestions and amendments made by the delegates.
On behalf of the CC, the General Secretary presented the Political and Organizational Review of the Central Committee. The POR reported the details of our unity efforts and asked the delegates to discuss deeply the policy of unity adopted by the CC. It pointed out the weaknesses in the functioning of the CC and its members. The delegate comrades have made many suggestions to improve the functioning of the CC collectively. They also said that the method of Unity with differences which the CC adopted was correct in the given prevailing situation despite the negative experience. They expressed that the party and leadership should be strengthened at all levels by achieving unity through struggle so that our party can discharge the tasks before it. The All India Conference adopted the resolution accepting the POR of the CC.
In 2013, the CPI(ML) and CPI(ML)-central organ Janasakti decided to merge into one organization on the basis of fundamental documents. The Unity Declaration by the two organisations dated 26-1-2013 has been placed for endorsement before the All India Conference. The conference adopted the unity declaration.
Following this, The Programme of New Democratic Revolution in India, The Path of Indian Revolution and the Constitution of the Party had been placed for endorsement along with some improvements made during the unity talks. The All India Conference endorsed these documents as the basic documents of our party.
The all India Conference elected a new Central Committee. The CC has met for a brief time and elected com. Viswam as the General Secretary.
The All India Conference adopted a number of resolutions on the burning issues and on the policies pursued by the ruling classes.
In his concluding remarks, the General Secretary called upon the comrades that we must implement the Leninist understanding and practice on the democratic centralism, criticism and self-criticism, internal discussion and struggle and discipline, carry on the struggle against the wrong trends in the light of Marxism- Leninism and Mao’s Thought, own and carry forward the best of the values and traditions handed down to us by the past communist movement. He also called upon the delegates to take the basic understandings, policies and decisions and the whole message of the conference to the party ranks and go into practice with redoubled dedication, clarity and conviction.
The All India conference of CPI (ML) has concluded with the enthusiastic singing of the “International”.
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