In a pre-Budget consultation with Finance Minister Nirmala Sitharaman, the Bharatiya Mazdoor Sangh (BMS), an affiliate of the Rashtriya Swayamsevak Sangh (RSS), has presented a robust set of proposals aimed at benefiting India’s working class and ensuring greater economic equity. One of the key highlights of their demands is the proposal to increase the income tax exemption limit to ₹10 lakh. The unions argue that such a move would provide significant relief to the middle class, stimulate economic growth, and increase disposable incomes, thereby enhancing consumer demand.
Key Recommendations from BMS
1. Increase in Income Tax Exemption Limit: The BMS is advocating for a substantial raise in the income tax exemption threshold to ₹10 lakh, significantly higher than the current exemption limit of ₹2.5 lakh. This recommendation aims to relieve millions of middle-class citizens who currently shoulder the tax burden. With rising living costs and inflationary pressures, the unions argue that the increase in the exemption limit will ease the financial pressures on individuals and families, particularly in urban centers where costs are escalating rapidly. The proposal, they believe, could also fuel domestic demand and strengthen the economy.
2. Constitution of the 8th Pay Commission: Another critical demand from the unions is the establishment of the 8th Pay Commission. This commission would review and recommend new pay scales for government employees, particularly in light of the rising cost of living. By ensuring government employees are compensated fairly, the unions believe it would not only improve their quality of life but also boost their purchasing power, contributing positively to the economy.
3. Expansion of MGNREGA: The union has also called for an expansion of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), particularly in the context of rural distress. The BMS advocates for guaranteeing 200 days of work per household, up from the current 100 days, arguing that this will provide economic stability to rural families, increase rural employment opportunities, and provide much-needed financial security to agrarian communities.
4. Implementation of Labour Codes: The unions have expressed their dissatisfaction with the delayed implementation of the Code on Wages, 2019, and the Code on Social Security, 2020. They demand that these labor laws be notified and enforced immediately. The BMS believes these codes will ensure that workers receive fair wages, safe working conditions, and comprehensive social security benefits. These measures are viewed as vital for improving the welfare of workers in both formal and informal sectors.
5. Special Package for Labour-Intensive Sectors: The unions are calling for a financial stimulus for labor-intensive sectors such as agriculture, plantations, beedi, and fisheries, which are critical to the rural economy. These sectors often have a large informal workforce, and the BMS believes that targeted financial support would uplift these industries, enhance worker welfare, and improve working conditions for millions of laborers.
6. Reinstatement of the Old Pension Scheme (OPS): The BMS is advocating for the reinstatement of the Old Pension Scheme (OPS), which was replaced by the National Pension Scheme (NPS) in 2004. The unions argue that OPS, which offers defined pension benefits to government employees, is a crucial safety net for workers post-retirement. By ensuring a guaranteed pension, the unions believe it would provide much-needed financial security for retired government employees, particularly in light of uncertainties surrounding the NPS.
7. Social Security for Gig Workers: With the rise of the gig economy, the unions are calling for social security benefits for gig workers, who currently lack such coverage. The BMS argues that these workers, who contribute significantly to sectors like transportation, delivery, and online services, should be entitled to benefits such as health insurance, retirement plans, and unemployment insurance.
8. Taxation Reforms: The unions have also proposed increasing taxes on the super-rich and raising corporate tax rates. They believe that this would help generate additional revenue for social welfare programs, which could then be channeled into the above recommendations, particularly those aimed at benefiting lower and middle-income groups. This proposal aims to create a more equitable tax system, ensuring that the wealthiest contribute more towards national welfare.
Context and Implications
The BMS’s proposals come ahead of the Union Budget 2025-26, which will be presented on February 1, 2025. These demands reflect the unions’ focus on creating a more inclusive economic environment that addresses the pressing needs of the working class, rural communities, and the middle-income groups. The unions argue that these measures are essential to ensure that India’s growth story is more balanced, benefiting all segments of society.
The recommendations are also in line with the growing concern among citizens and experts regarding rising income inequality, with the BMS pointing to the need for a comprehensive overhaul of existing economic policies. The implementation of these proposals could lead to stronger economic growth, increased purchasing power, better working conditions, and more robust social welfare systems.
While the BMS’s proposals have been met with support from various quarters, their implementation will depend on the government’s fiscal priorities and the available budgetary resources. As India continues to recover from the global economic disruptions, it remains to be seen how much of the unions’ demands will be incorporated into the final budget.
Finance Minister Nirmala Sitharaman’s response to these proposals is eagerly awaited, as it could have far-reaching consequences for India’s tax system, labor laws, and social security framework. The unions’ recommendations are likely to spark debate over the best way forward in creating a more inclusive and equitable economy, particularly in the context of India’s ambitious growth targets.
In Conclusion
With India’s economic future at a crossroads, the proposals from RSS-linked unions highlight a shift towards prioritizing the welfare of the working class and middle-income groups. If implemented, these measures could significantly reshape India’s fiscal policies and contribute to a more inclusive economy. The BMS’s demands reflect a growing recognition that India’s future growth must be balanced, sustainable, and inclusive, ensuring that no one is left behind as the country moves forward.
BY – NIKITA
