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Finding faults in Budget
July, 27th 2009

A Congress member today joined the Opposition in the Lok Sabha in faulting the government on Budget, particularly on scrapping of Commodities Transaction Tax and not focussing on the fast-growing population of urban poor.

Participating in the debate on Finance Bill, Sanjay Nirupam said the decision to scrap the Commodities Transaction Tax should be reviewed and suggested that the commodities trade be brought under the ambit of Securities and Exchange Board to ensure proper regulation as it is fraught with the danger of speculation.

Noting that Commodities Transaction is worth 52 trillion dollars, he said the commodities exchanges are more volatile than the financial exchanges and its unregulated conduct would lead to rise in prices of essential food items.

He said it should be taken away from the ambit of the Agriculture Ministry and brought under the purview of the Finance Ministry.

 
 
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