Joint Statement by Central Trade Unions on the 2025-2026 Budget

Press Statement

The following statement was released to the press by the platform of Central Trade Unions and independent Sectoral Federations/Associations on Budget 2025-2026 presented by the finance minister Ms Nirmala Sitharaman.

• Pro-corporate Budget 2025-2026, shattering hopes of workers, farmers, unemployed youth, students and women
• No relief from price rise of essential commodities
• Job losses and jobless growth is the main direction.
• Trade Unions to organise Nationwide Protest on 5th February

The Budget 2025-2026 has once again treaded the path to the advantage of big business corporate houses, fails to address the unprecedented unemployment situation, aggravating agrarian crises, uncontrolled inflation resulting in rising prices of essential commodities, continuity of polices of privatisation and sale of Public Sector enterprises and Public services, less budget to education and health making it difficult to access by the poor, marginal, lower income groups as well as middle classes.

The announcement of 100 percent FDI in insurance sector would be damaging not only to our common people and the farmers but to the country’s economy as well. The policy of handing over public sector enterprises and public infrastructure to the corporates through the policy of National Monetisation Pipeline to continue aggressively.

The policies of the Union government have resulted in the increase of inequalities and this budget will ensure that trajectory to continue. Once again announcement is made of another set of schemes whereas the track record of this government has been to announce schemes and never inform the nation what happened to the implementation of the same. Mrs Sitharaman made a loud statement that " A country is not just its soil; a country is its people". Yes, Madam the country is its people among whom the vast majority are the wealth producing sections of our society- the workers and the farmers who are totally neglected in this budget.

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 (it is only 2.6%), health (it is only 1.9%), drinking water, shelter to the poor, marginal and lower income group people. Some cosmetic announcements are mainly to garner votes only.

The raise in the tax relaxation to middle class is made but with the price rise of essential commodities, expensive healthcare and education, wage depression due to inflation, hence this is no big bonanza to middle class.

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 % stealing the wages of working people is one of major factor in that. Employment expanded only by 1.5 % 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 of this government is miserable.
 
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 relief for them 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. CTUs’ demand to increase funds to MGNREGA not only ignored, rather there is decrease in practical terms. The demand by Central Trade Unions to have Urban Employment Guarantee Scheme is also ignored. The cut in Railway budget indicates its negligence of safety norms rather to continue privatisation of this vital sector of our country.

The allocation of budget to ICDS, ASHA and Mid-day-Meal schemes is reduced in practical terms, it is not only blow to those engaged in these schemes but is the utter neglect of the families of marginal and lower income groups who receive these services

The FM said that the migration should be option and not necessity, but that requires direct investment into creation of jobs. On the contrary the finance minister has offered several incentives to the employers in various sectors claiming that this would generate jobs. It will remain a mirage as is the track record of this Government. The government is not willing to make recruitments in the already sanctioned posts in the central and state government departments and the PSUs while the ban on creation of jobs continues. The government is pushing for nuclear energy/atomic energy/nuclear reactors where as it is endangering the nation by fast-track privatization 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 give advantage to Monopoly corporates are reflected in this budget. The announcement by the finance minister about decriminalisation of provisions and exemption in violations is actually aimed to weaken the trade union movement who represent the voice and interest of 570 million (57 crores) of work force in the country. The government agenda to do away with inspection system continues with vengeance.

The platform of Central Trade Unions and Independent Sectoral Federations/Associations calls upon the common people to join the nationwide protest on 05th February 2025 against anti-worker, anti-farmer and anti-people budget 2025-2026.

INTUC, AITUC, HMS, CITU, AIUTUC, TUCC, SEWA, AICCTU, LPF, UTUC

And independent Sectoral Federations/Associations