AITUC statement on 2025 Union Budget

All India trade Union Congress (AITUC)

New Delhi,

February 1, 2025

Press Statement

The following statement was released to press by AITUC as preliminary reaction on Budget 2025-2026 presented by the finance minister Ms Nirmala Sitharaman today

The Budget 2025-2026 belies hopes of workers, farmers and unemployed youth

No relief in sight for the common man from price rise of essential commodities

The Budget 2025-2026 reflects that there is continuity of policies which have resulted in the increase of inequalities since the Modi Government came to power. This Budget would also lead to that direction only.

There were loud statements from the finance minister while presenting the budget which lacks substance for the downtrodden sections. The track record of this government has been to announce schemes and never informing the nation what happened to the implementation of the same.

This budget is another blow to informal economy workers, unemployed youth, poor and marginal farmers who are ignored.

The budget does not do justice to the needs of our people for more needed allocation to education, health, drinking water, shelter to the poor, marginal and lower-income group people. The cosmetic announcements are short lived to garner votes only.

The raise in the tax relaxation to middle class is made but the price rise of essential commodities has already brought hardship to the people and this budget fails to address the issue of inflation. The wage depression is the scenario due to inflation. The fact revealed by Economic Survey that the monthly wage of self-employed and the salaried is gone down in 2023-2024 from 2017-2018. In case of self employed men, the wage is lower by 9.1% and for females by 32% in this mentioned period. Similarly for salaried class reduction was for males 6.4% and for females 12.5%. During this very period the corporates increased their wealth by 22.3 percent stealing the wages of working people is one of major factor in that. Employment expanded only by 1.5 percent as per the same survey. The expenses on education and health have increased exorbitantly which is a burden on the poor sections of our people including the middle class. Hence this so called jubilation of increase in the tax slab for the middle class is more of a propaganda specially to garner votes in the assembly elections in Delhi and the coming election in Bihar. To keep its ally in Bihar within NDA fold and the forthcoming election in the state, the schemes were announced but there is no guarantee that they would be realised as earlier track record is miserable.

Its agenda of privatisation and sale of Public Sector enterprises and public services continues with vengeance. 100% FDI is announced for insurance sector which would impact the middle and lower middle classes as well as the farming community adversely. The government continues its failed schemes of ELI and production linked incentives which did not help generate better paid jobs but served the interest of corporates and continues in the new form of incentives in some other areas.

The Budget talks big about increased credit facility to MSMEs but does not give the desired packages for the revival of those units which were pushed to die because of un planned demonetisation and GST polices.

Agrarian crises is not addressed rather the new scheme namely National Policy Framework on Agricultural Marketing announced a few days ago will further add to the miseries of farmers to push them out of farming. The funds to MGNREGA are not increased as per required, nor the days of work increased. The demand by Central Trade Unions to have urban employment guarantee scheme is also ignored.

It is very easy to say that migration should be option and not necessity, but that required direct investment into creation of jobs. The finance minister has done nothing in that regard but has offered several incentives to the employees in various sectors claiming that this would generate jobs. It is well known as per government records of implementation of announced schemes that this will remain a mirage. The government is not willing to make recruitments in the already sanctioned posts in the central and state government departments and the PSUs while it has also put a ban on creation of jobs.

The government is pushing for nuclear energy/atomic energy/auclear reactors where as it is endangering the nation by fast track privatisation move of electricity generation and distribution in the country.

Trade Unions had demanded increase in corporate tax, introduction of wealth and gift tax to raise money but nothing of the sort done rather indirect taxes and Cess on common masses will add to their burden. We know that the government takes this route to meet the fiscal deficit.

In the name of "Ease of Doing Business" the government is pushing pro employer, anti workers labour codes whereas the policies to the advantage of Monopoly corporates are reflected in yet another budget. The announcement by the finance minister about non-criminalisation of provisions and exemption in violations is actually aimed to weaken the trade union movement who represent the voice and interest of 57 crores of work force in the country. The intentions of the government is very clear that occupational safety and health of work force are non agenda for the government as it intends to do away with inspection system.

AITUC resolves to join the nationwide protest alongwith the other central trade unions on 05th February 2025 against Budget 2025-2026.

Amarjeet Kaur

General Secretary