Tuesday, February 1 2005 18:58 Hrs (IST) - World Time -

New Delhi: Left parties today (Feb 1, 2005) asked the Government to hike taxes on the rich and phase out exemptions to corporates in the Budget for ensuring additional Rs 50,000 crore for employment, agriculture, education and health sectors.

In their pre-Budget meeting with Finance Minister P Chidambaram, Left parties opposed disinvestment of PSUs and wanted more discussion with UPA (United Progressive Alliance) for finalising the roadmap for banking sector reforms.

Asking Finance Minister to revamp indirect taxes and raise corporate tax rates to hike the tax: GDP ratio by 1.5 per cent to over 10 per cent next fiscal from about 9 per cent in 2003-04, the Leftist members of UPA plumped for "capping" Defence spendings to about Rs 66,000 crore.

"The Budget must provide for four key areas - National Employment Guarantee Scheme, investment in agriculture, health and education," CPI (Communist Party of India) leader A B Bardhan said after the meeting.

Prakash Karat of CPM (Communist Party of India-Marxist), D Raja of CPI and other leaders reiterated the need to raise Government revenue to fund the social sector schemes.

"The last Budget provided Rs 10,000 crore more for these four areas. Much more is needed in next fiscal. We need at least Rs 50,000 crore more in the Central Plan outlay during 2005-06 for meeting commitments made in CMP (Common Minimum Programme)," Bardhan said.