• Delhi workers hold aloft their flag of struggle on May Day

• Residents of Transit Camp fight out against demolition and displacement

• May Day meeting celebrated with vigour in Tamil Nadu

POLITICS

• Condemn the state organised communal violence in Vadodara!

• Condemn the dastardly murder of innocents in Doda

• A disastrous course leading to civil war in Chhattisgarh

WORLD

• Bolivia joins Cuba and Venezuela in Bolivarian Alternative
  A weapon to confront US imperialist domination and neo liberalism

• Massive anti war protests in the US

• Hail the forward march of the revolutionary forces in Nepal!
  Defend the right of the Nepali people to establish the political system of their choice!

• Millions protest against criminalisation of immigrants

• May Day observed world wide
  Fight against capitalism intensifies

ECONOMY

• Estimate of the annual cost of tax concessions:
  Over Rs. 150,000 crore of hidden hand-outs to big capitalists every year

Delhi workers hold aloft their flag of struggle on May Day

On May 1, workers from different parts of Delhi held aloft their red flags and pledged to continue the struggle for ensuring their rights. Here are some glimpses of the May Day programs organized by workers in Delhi.

Sanjay Colony – Okhla Phase II

On May 1, hundreds of people from this JJ Colony gathered in front of the party office under the banner of CGPI. Unfurling the red flag of the working class they shouted slogans to continue their struggle against capitalist exploitation. Working women and youth were also present in large numbers. Everyone pledged to accelerate efforts of organizing the working class with the aim of setting up a society free from exploitation through revolutionary transformation. Comrades of the CGPI addressed the workers. The Sanjay Colony Residents Struggle Committee participated actively in the program.

JJ Colony – Khader Extension

Pledging to continue their struggle in an organized way for employment, shelter, security of life and basic services, hundreds of residents of JJ Colony – Khader Extension unfurled the red flag on May Day. The program was organized by the Hind Naujawan Ekta Sabha in association with several other local organizations.

Transit Camp – Govindpuri, Kalkaji

More than 750 residents of Govindpuri-Kalkaji celebrated May Day under the banner of Lok Raj Sangathan. The residents of this colony were warned by the Delhi Development Authority that their homes will be demolished and they will be uprooted from the area where they have been living for many years. Opposing this gross injustice and in an effort to protect their just rights the residents unfurled the red flag and gave the clarion call for irreconcilable struggle. They shouted slogans against the DDA and Delhi Administration. Addressing the gathering, LRS spokespersons appealed to the people to organise themselves and fight, without depending on “big leaders”.

Okhla Industrial Area

Many workers unions took out a joint demonstration at 2 p.m and converged at a rally in the evening. Carrying red flags, hundreds of workers belonging to different organizations demonstrated militantly. Addressing the rally, several union leaders opposed privatization, retrenchment, lockouts and gave a call to the workers to step up their struggles opposing any attempts to deprive the workers of their rights. Mazdoor Ekta Lehar was distributed in hundreds among the workers. Joint May Day Program

Thousands of workers from different trade unions and organizations gathered at the historic Ram Lila Grounds in Delhi, on May 1 at 4 pm. Carrying placards displaying their demands and holding aloft red flags along with banners of their respective organizations, the huge mass of workers traversed through the lanes of Chandni Chowk singing revolutionary songs and shouting slogans. They later reached the Town Hall where a big rally had been organized for celebrating May Day.

Workers participating under the banner of Mazdoor Ekta Lehar raised slogans opposing globalization and privatization, labour law reforms and the increasing capitalist exploitation. They also expressed their views to many shopkeepers, traders and workers on the current attacks on the rights Delhi’s working people and in defense of their rights to livelihood and shelter. Spokespersons of several central trade unions such as CITU, AITUC, AICCTU, UTUC, UTUC(Lenin-Sarani) and others addressed the rally. The program was conducted by several workers organizations including MEC. Hundreds of MEL were distributed in the demonstration and rally.

Residents of Transit Camp fight out against demolition and displacement

Thousand of residents of Transit Camp in New Delhi blocked the major artery in Okhla Phase-I Industrial, between Lal Chowk and Gol Chakkar, leading to massive traffic jam. Women, old, children and youth in thousands, with lathis in their hands challenged the police and rapid action force and continued the blockade.

On May 5, Delhi Development Authority (DDA) had put up a notice informing people to vacate their houses before 8 May, and that demolition will take place from 9-11 May. The notice mentioned that the land on which houses were built during the past 21 years comes under Green Belt as per Delhi Development Plan and hence they will be displaced from the land. There is no plan for their relocation and resettlement. This is an attack on life and livelihood of all the people of Transit Camp. Under the leadership of Lok Raj Sangathan, nearly a thousand people seething with anger gathered at Ramlila Maidan in TC. They resolved to fight against this illegitimate order as an attack on their life and livelihood, and if necessary to sacrifice their life for their cause.

Besides many local activists, leader of Lok Raj Sangathan Bijju Nayak, and Delhi Convenor of Lok Raj Sangathan and well-known women activist Sucharita addressed the gathering. They stressed that we can rely only on our collective strength and organisation, and not get diverted by the vote bank politics and parliamentary games of various parties. The gathering decided to form "Transit Camp Bachao Sangharsh Samiti", which will lead the struggle through collective decision involving everybody.

The Transit Camp was established in 1985, when thousands of jhugis across Delhi were demolished, and people resettled here. 1762 families were allotted 12.5 square yard land each by the government. They were promised that they would soon be given permanent land. Nearly 20-25 thousand people reside here. In the past 21 years a whole new generation grew up here. The people have invested their lifelong saving in building their homes. Until 2003 DDA was taking rent from them, and the people have been given water and electric connections, and ration card and voter identity card.

On May 5, the residents of Transit Camp filed a petition in Delhi High court. However on May 8, the High Court gave ruling against the petition. Hearing the news thousands of residents came out on the streets and blocked Mata Anandmayi Road. They were ready to fight till end to protect their homes from demolition.

The High Court argued that the decision was based on 1960 Master Plan of Delhi according to which the land where transit camp is located comes under green belt. However the residents are arguing that when the DDA knew that the land comes under green belt why did it resettle them there. It is DDA's fault, and why should they suffer? The government must either change the master plan and convert this land into residential area, or provide them alternate land and compensation for what they built in past 21 years.

The news of the struggle spread across the entire Delhi city like fire. All justice-loving people must support this struggle. This struggle is a major contribution to the overall struggle of people of Delhi against the attack on their homes and livelihood, which is being carried out in the interest of big monopoly companies and big business.

May Day meeting celebrated with vigour in Tamil Nadu

May Day 2006 was celebrated with a lot of enthusiasm and vigour in Tamil Nadu.

May Day meetings were organized in Kanyakumari District and Chennai jointly by several organizations including the Communist Ghadar Party of India, Workers Unity Movement, Lok Raj Sangathan, Socialist Workers Union, S&S Power Switchgear Employees Union, Tamil Nadu Printing Workers Union, Unorganised Workers Federation, Kanyakumari District General Workers Union, and others. Speakers who addressed the workers in these meetings pointed to the imperialist ambitions of the Indian bourgeoisie and the anti-labour measures that it is contemplating in the future to make India a haven for Indian and foreign multinationals. They reiterated the need to build the unity of the working class by stepping their struggles in defence of their rights. They also elaborated on the anti-democratic nature of the present political process and electoral system, where the workers have no decision-making power and where the big political parties of the bourgeoisie use their enormous money and muscle power to get their candidate elected and keep the people away from exercising their democratic rights.

Vadodara in Gujarat has recently been the scene of incidents of state-organised communal violence, following the demolition of the 300 year old dargah of Sayed Sarsiddin Baba in the Fetehpura area, by the Municipal Corporation authorities, accompanied by the police, on May 1. The demolition was carried out under the orders of the Gujarat High Court, to remove "unauthorised" structures. But the issue of places of worship, hundreds of years old, being "authorised" or "unauthorised" was so ridiculous that the Supreme Court had to subsequently put a stay on the demolition.

When residents of the predominantly Muslim inhabited area objected to the demolition and pelted stones at the Municipal staff and police, the police resorted to lathi charge, lobbed tear gas shells and opened fire, killing two people on the spot and injuring scores of others. It is reported that at least four people have since succumbed to their injuries.

Following this incident, criminal mobs were organised to attack various Muslim inhabited areas, with the full backing of the police and local politicians, in a deliberate attempt to instigate communal violence and massacres. Several people were wounded, houses, factories and shops were destroyed in incidents of stabbing and arson. One person was reported to have been burnt alive in his car. According to the residents of the area, while all this violence was going on, the local police rejected their repeated appeals to provide security and even responded with communal remarks like "If you want security, go to Pakistan"! For nearly two days, looting and arson by the state-organised mobs was allowed to go on, while curfew had been imposed on all the Muslim dominated areas to disarm the local residents. After this, on May 3 the Central government sent in the army and paramilitary forces to 'bring the situation under control'.

People's Voice condemns the state-organised communal violence in Vadodara. This incident once again shows that organising communal violence remains a favourite weapon in the hands of the ruling class, who will not hesitate to use even an incident of just resentment of people against the civic authorities and police, to stoke up communal tensions and organise communal violence. It calls for utmost vigilance on the part of the people, to not allow their struggles against the ruling class and its state to get diverted into fratricidal violence.

Meanwhile, the ruling class media has been busy comparing the recent violence in Vadodara with the state organised communal genocide in Gujarat in March 2002 and suggesting how the people in Gujarat and other parts of India are communal. The role of the state and its administration in organising and aiding the communal violence is being deliberately obscured. It is also being suggested that unlike the NDA led Central government of 2002, the present UPA led Central government has acted in a more 'responsible' and 'communally sensitive' manner by promptly rushing central security forces into Gujarat. Such suggestions are utterly mischievous and reprehensible. Can we ever forget how the same Congress party that heads the UPA government at the Centre today, masterminded the gruesome massacre of thousands of Sikhs in Delhi and other places in Northern India in 1984? 21 years later, the victims of that massacre are still crying out for justice, while not a single one of the criminal Congress politicians who led the killer mobs has been punished! We also cannot forget that the UPA government which came to power in 2004, on the platform of 'secularism' and 'opposition to BJP communalism', has so far done nothing to punish those guilty of organising the communal massacres in Gujarat in 2002.

The recent incidents in Vadodara are yet another replay of the time-tested mode of operation of the Indian ruling class and its state. This is the operation of organising communal violence, of organising attacks by criminal killer mobs while disarming and terrorising the people of the targetted community, and then after a period of time, sending in security forces to 'control the situation'. This is the method that is repeatedly followed, to make out as if people are communal while the state is the keeper of 'communal harmony'. To further confuse the situation, the ruling class media tries to make out as if some particular political party or state government is communal while the Central government is allegedly 'neutral'. However, the cruel reality that keeps revealing itself is that the entire state apparatus is communal and state organised communal violence remains a tried and tested weapon in the hands of the ruling class to sort out their crisis and divide the opposition of the people. This state apparatus of communal and fascist violence has to be smashed by the united and organised might of the people and the guilty have to be punished, in order to end this tragic cycle of communal violence and bloodshed.

Condemn the dastardly murder of innocents in Doda

People's Voice condemns the cold blooded massacre of more than 20 residents of Kalhan village in Doda district of Jammu region. This bloody massacre on 1 May came in the wake of the kidnapping and brutal killing of four shepherds in the neighbouring Udhampur district. These murders of innocent people must be condemned and the perpetrators must be tried and punished for murder. The State, i.e. the governments at the Centre and the state must be condemned for failing to protect the lives of the people living in J&K, this despite the repeated claims for help and protection against threat of such violence from the people of this and other districts.

From the various reports of the events of 1 May and on the situation there, it is clear that there are criminal armed groups who roam freely and unfettered in the district, not just in the remote areas, but even in the busy towns. How is it that the Indian state with its armed might and intelligence is unable to control such crimes? After this latest killing, the Press reported that one "militant" had been gunned down in an encounter but no evidence of any plan to attack the said village or any other plan was found. And yet, the military authorities are very sure that this "militant" was involved in the killings, and that he had been trained in Pakistan. This has become the routine in J&K since many years now - innocent civilians are killed, one or more youth is gunned down in the name of eliminating "militancy" and the event is allowed to be forgotten. At the same time, thousands of Kashmiri youth are abducted directly by the police and military, found dead a few days later, or their families are awaiting news of their sons and brothers for months and years on end.

The Indian State is ruling J&K with guns and its military might and through terror. The Indian government claims that 'normalcy' has been restored to the state since the last general elections in 2002. However, those who witnessed the elections saw how the voters came to the polling booths - at gun point of the military, and the unspoken threat that hung over any one who wanted to boycott the elections. At the same time, people were under threat from other armed groups who were for the boycott of elections.

The innocent people of the state are caught in this cross fire and are unable to get out of the tragic cycle of violence and counter violence. Thousands of people have become victims of such violence and the victims are both ordinary Muslims and Hindus, and the tension is used by the Indian state to foment and organise communal violence. The people of Kashmir, whether Hindus or Muslims, have no faith that either the Centre or the state administration will protect their lives. While the army treats every Muslim youth as a terrorist trained in Pakistan, the local people see the police supporting the most criminal elements, firing and lathi charging women who have come out in thousands against the killing of their kin.

The people of J&K have been deprived of their fundamental right to security of life and been forced to live under the constant threats of death, abduction and torture. The Indian government, the imperialists and various forces are not interested in a solution for the people. There is a chance for sustained peace and security only when a political solution is reached with the participation of the people of the state and they can chart their own political destiny.

A disastrous course leading to civil war in Chhattisgarh

The actions of the Indian state in Chhattisgarh have already forced tens of thousands of people from the southern districts of the state to flee their homes and live in relief camps. The state government and police are actively promoting violence between Maoist insurgents and the tribal people in order to force the tribal people into joining the state funded and organized vigilante group called the Salwa Judum. The able bodied persons in this group are being trained and armed and have been given the status of special police officer and are offered monthly salary by the state government. The purpose of the Salwa Judum is to clash with the Maoist groups, which have been operating in the region for more than 20 years and include many from the same tribal people who have been forced to form the Salwa Judum. Already 216 people have been killed in a single district in 2005 and this alarming count is likely to be exceeded this year. This amounts literally to organizing a civil war among the tribal people of Chhattisgarh.

This civil war is being justified as the only way to counter the Naxalite insurgency. Prime Minister Manmohan Singh has already declared that the Naxal problem is the most serious threat to internal security and has extended full support to the state government ruled by an alliance led by the BJP. The Central government is planning to deploy 11 battalions of paramilitary CRPF in states affected by Naxal insurgency including Chhattisgarh. The CRPF has been implicated in serious abuses in other parts of the country, including the Jammu and Kashmir state. Recently, K.P.S. Gill, who led the Punjab police at a time of widespread rights violations (see box below), has been appointed as a special advisor to the State government.

In March this year the Special Public Protection Act came into force. It is a law with very wide scope and allows detention of up to three years for “unlawful activities”, which include even peaceful protests, or giving food to the Naxalites. This law can also be used to gag reports that expose the gross violation of rights in the area.

Instead of addressing the real problems of the tribal people, whose land and resources are being plundered by the ruling class, the government is bent upon annihilating the tribal population by a fratricidal civil war. MEL demands that the draconian Special Protection Act, and the appointment of the special advisor, K P S Gill be reversed, and the diabolic actions of pitting tribal people against each other be immediately halted. The approach and actions of the State and the Central government in Chhattisgarh deserve strong condemnation by the working class and all people who stand for justice, peace and progress.

Bolivia joins Cuba and Venezuela in Bolivarian Alternative

A weapon to confront US imperialist domination and neo liberalism

On the occasion of the first anniversary of the agreements to implement the Bolivarian Alternative for the Americas (ALBA), signed by Cuba and Venezuela (April 29, 2006), Bolivia too joined the ALBA. With this, the ALBA has been strengthened and the challenge to the US imperialist dominated Free Trade Area of the Americas (FTAA) has become much more serious.

US imperialism has historically regarded Latin America as its own backyard and attempted to dominate if not control the entire political and economic activity of the Western Hemisphere. As is well known, big US corporates have been known to finance overthrow of leaders who do see eye to eye with them. US imperialism is notorious for its support to the most bloodthirsty dictatorships such as Pinochet and Batista. Any country which does not toe the line of the US imperialists even on matters such as trade concessions, such as Cuba, is faced with trade embargoes, economic isolation and ruin. Thus the sovereignty of all nations and peoples of the western hemisphere has been under threat from US imperialism.

The leaders of Cuba, Venezuela and Bolivia have signed a People’s Trade Agreement (TPC) as an alternative to the so called “free” trade agreements used by the US government in its attempts to drive the peoples into greater exploitation and dependence.  In the documents signed by the three leaders, positions are established on an integration process that, they agreed, must be “based on principles of mutual aid, solidarity and respect for self-determination” with the goal of “providing an appropriate response to raising up social justice, cultural diversity, equity and the right to development that the peoples deserve and demand.” ALBA has already led to great advantages to the toiling people of Venezuela (see box). With this step taken by Bolivia, the integrationist efforts taking place throughout the continent under new nationalist and popular governments are deepening, efforts that are already bearing fruit in the case of Cuba and Venezuela.

People's Voice hails this step taken by the leaders of Cuba, Venezuela and Bolivia and trusts that this will lead to greater victories for the peoples of the Americas and the world.

Massive anti war protests in the US

Over three hundred thousand people marched through the streets of New York on April 29, 2006, calling for an end to the Iraq war and to bring back US troops immediately. They also warned the US government against going to war with Iran.

The demonstrators stretched for about 10 blocks as they headed down Broadway. Several people who had lost sons and near and dear ones in the Iraq war participated in the massive protest. One of the signs in the multitude read "End this war, bring the troops home." Another read "Veterans for Peace." One of the marchers reflected the mood of her compatriots when she said that "We've been lied to, and they're going to lie to us again to bring us a war in Iran".

Iraqi patriots have been stepping up their attacks on the occupying forces, and both the US and the UK have suffered severe causalities recently. The death toll in Iraq for April ’06 at 70 was the highest for a single month in 2006. At least 2400 US military personnel have been killed since the war began. This is leading to a huge outcry in the US and in the UK, where the Labour Party’s losses in recent by elections are widely attributed to the support given by the Blair government to the war in Iraq.

Hail the forward march of the revolutionary forces in Nepal!

Defend the right of the Nepali people to establish the political system of their choice!

Through their courage and determination, the people of Nepal have won an important victory in their struggle against the tyrannical monarchy and for their right to establish the political system of their choice. Many challenges and dangers remain, but a significant change has occurred in the situation prevailing in Nepal today as compared to a few short weeks ago.

The monarch Gyanendra remains in Narayanhiti palace in the same position as of now, but his future hangs in the balance. The parliament of 2002 that has been restored has called for an elected constituent assembly that would determine the fate of the monarchy and the form of political power. The restored parliament is comprised of the same configuration of political parties as before. They have chosen as the Prime Minister the veteran of many earlier governments, the Nepali Congress leader G.P.Koirala. However, all of them know that their each and every move is being closely watched by the people, who have raised the slogan of “Leaders, beware!”, to ensure that no underhanded deals or anti-people measures are adopted. The interests and presence of foreign powers that have always freely interfered in Nepal's affairs, including the US and the UK and India, are still there, closely monitoring developments in Nepal, but have been forced to maintain a low profile for the time being.

The main change that has occurred is that the masses of people of Nepal, in the towns and the countryside, women and men, old and young, have shown to the world that they have the courage and resolve and unity to defeat combined efforts of the monarch and his backers to put down their struggle. The more the monarch unleashed brutal repression against them, killing hundreds and jailing thousands, the bigger the numbers of people who came out on the streets clashing with the armed forces. This created a situation in which it was impossible for any political party to come to a deal or understanding with the monarchy. It also made it necessary for the various parties to end their bickering and infighting and come together on a platform of struggle. The fighting people also showed their political maturity when they uncompromisingly rejected last ditch efforts by the Indian government to try and act as “honest broker” and work out a compromise deal.

The people of Nepal need all their courage and wisdom, all their unity and determination, in the coming weeks and months to ensure that the gains of their struggle are not snatched away from them. The two-pronged demand – for an elected constituent assembly to determine the fate of the monarchy and the form of political power, and for sincere talks between the government and the Maoist insurgents – appear to enjoy widespread support. A major step has been taken by the parliament when it unanimously and promptly passed resolutions in favour of these two. But it requires both constant vigilance and organisation on the part of the people to ensure that these become a reality.

There are several external powers that are determined to prevent the Nepali people from taking a revolutionary road, and in imposing a capitalist democracy in that country, with multi-party representative democracy as the political process. The communists and progressive forces in Nepal must resist this pressure from external and internal vested interests. Indian communists and freedom loving people must extend wholehearted support to the people of Nepal and uphold their right to determine their future, including the composition of the Constituent Assembly, without external interference or pressure of any kind.

Millions protest against criminalisation of immigrants

As reported in previous issues, authorities in the US are in the process of passing laws to declare millions of immigrants and anyone who supports them as criminals. This has drawn massive and sustained protests from immigrant communities and working people all across the US. Millions of people participated in Labour Day protests in cities across the US, in support of their demands that no one should be declared illegal and that everyone has a right to work and earn his living with dignity.

In order to draw attention to the crucial role played by immigrant labour in the US economy, May Day was observed as a "Day Without Immigrants". All migrants were asked to stay away from work and participate in protests against the criminalisation of migrants. From Los Angeles to Chicago, Houston to Miami, the "Day Without Immigrants” drew a massive response. Several businesses had to remain closed because of the overwhelming participation of people from all communities in this action.

About half a million people participated in two major rallies in Los Angeles, where the city streets were a carpet of undulating white that stretched for several miles, Similarly, over 400,000 people participated in a march through the down town district in Chicago. Tens of thousands participated in marches in New York, which had also seen a massive anti – war rally only a couple of days before (on April 29th 2006). Protest actions were organised in several US cities including among others, Houston, San Jose Miami and other cities of Florida. Rallies were also held in many smaller towns in the states of Pennsylvania, Connecticut, Arizona and South Dakota etc in which tens of thousands participated. Many industries which relied on the cheap labour provided by immigrants were totally crippled on May Day.

Immigrants have historically provided labour for the capitalists of US and helped them to amass their legendary capital which made the US one of the most powerful nations on earth. They have also historically had no avenues to exercise their rights and made to work in very bad conditions. Early US capitalism is notorious for the forcible import of hundreds of thousands of African people were forcibly imported into the US as slaves, and made to toil without any rights at all on the cotton farms in the south of the US. The American Civil War “freed” them, i.e. proletarianised them and made them “free” to sell their labour power to factory owners. For decades, migrants from Mexico and other countries of Latin America have been providing cheap labour to the US, as have migrants from Asia, Africa and the Pacific Rim countries. However, instead of acknowledging their role and giving them their rightful place in society, migrant workers are being attacked even more viciously. Racist attacks are organised to split them and to turn them against their class brothers from other communities.

The May Day protests in the US are part of important concerted mass actions which show the power of the working class when it is united.

May Day observed world wide

Fight against capitalism intensifies

From Djakarta to Moscow, from La Paz in Bolivia to Tokyo, millions of workers observed May Day in commemoration of the struggles and victories won by the working class over the decades, and to reaffirm their resolve to fight against capitalism and imperialism. People all over the world also denounced imperialism as a source of war, condemned the war mongering threats to Iran and other countries, and called for foreign troops to be pulled out of Iraq and Afghanistan.

Millions of working people in the US took out some of the most massive rallies seen in recent times on May Day, against the moves of the US government to declare millions of immigrants and those who help them as criminals. (See separate report in this issue)

CUBAN President Fidel Castro, who led the May Day rally of over one million people in the Plaza de la Revolucion in Havana, reiterated in his speech the resolve of his people to uphold and defend their country and their economic and political systems in the face of direst threats from US imperialism. He referred to newly uncovered evidence which showed that US imperialism was in fact one of the biggest sponsors of terrorism, in particular terrorist attacks directed against Cuba.

In Djakarta, and Manila, workers fought battles with the police forces who tried to block their May Day Marches. In Moscow and Kiev, people came out on the streets to reiterate that the return to open capitalism had made things much worse for the masses, while a handful of capitalists had benefited greatly. Several tens of thousands of people marched through the capitals and cities of European countries such as UK, Greece and Italy. More than fifty thousand workers marched through the streets of London, upholding the unity of working people all over the globe in their struggle for a better future for mankind. Throughout the world, workers have given a fitting reply to the line that the people have ‘no alternative’ but to accept the capitalist system or at best, try to get some minor concessions within it.

Estimate of the annual cost of tax concessions:

Over Rs. 150,000 crore of hidden hand-outs to big capitalists every year

The Finance Minister has for the first time presented data on the total cost to government, of the tax concessions handed out to big business houses. Including corporate income tax concessions, excise and customs duty concessions, the total size of such hand-outs is estimated at Rs. 158,661 crore in this fiscal year 2006-07.

If this enormous cost is added to the other two large unproductive expense items, which also deliver economic benefits to the big banks and arms merchants – namely, interest payments and ‘defense’ – the aggregate is a staggering Rs. 387,500 crore. This enormous burden of fattening the big corporate houses and money lending institutions is the real reason why the “Government has no money” for anything that the working people need and demand in order to lead a life fit for human beings.

The overall fiscal deficit in 2005-06 is estimated at Rs. 146,000 crore. The cost of tax concessions is more than that. This means that if the Government of India stops giving hand-outs to the big capitalists in the form of tax concessions, then there would be no fiscal deficit. The government will not have to borrow a single paisa to finance its current level of expenditure. It does not have to approach the World Bank or the Asian Development Bank, or any lending agency for that matter.

If the Government does not need fresh borrowing, it can easily issue a moratorium – that is, a temporary suspension until further notice – of interest payments to the lending institutions. This would free up Rs. 140,000 crore that could be reallocated towards fulfilling the basic needs of the working people, in the cities, towns and villages.

Total allocation in the 2006-07 Budget under the head of ‘Social Services’ is Rs. 58,181 crore, which is less than the concessions on corporate income tax alone. This means that if the hand-outs to big capitalists in the form of corporate tax concessions were immediately put to an end, then this one measure alone would free up enough resources to be able to double the level of central government expenditure on social services.

From these facts, the workers and peasants must conclude that it is a big lie when the spokesmen of the government argue that there is not enough money to provide universal good quality education, health care and housing for all. Public money that should have been used for the benefit of the people, is being increasingly diverted into the pockets of the big bourgeoisie, Indian and international.

The working class, peasants and other working people in the country must unite to demand that the government must immediately withdraw all tax concessions to capitalist corporations. It must stop fattening the big capitalists at the expense of the rest of the population.

We must demand that resources that are currently channeled into the pockets of the capitalist corporations, in one form or another, be reallocated and reoriented to fulfill the rising material and cultural needs of the masses of working people.