Opposing any hike in the prices of petro products, it said the Government should restructure the indirect tax structure on petroleum. The Left said the bottomlines of the oil companies could also be improved if Budget 2008-9 did away with the ad valorem duty structure and replaced it with specific duties. A price stabilisation fund for petro products should also be set up with resources from an oil cess.

Reiterating its opposition to the “unjustified and anti-development” provisions of the Fiscal Responsibility and Budget Management (FRBM) Act, the Left note said under no circumstances should the FRBM deficit targets be allowed to constrain Plan expenditure. The UPA allies demanded that the Gross Budgetary Support for the Central Plan be increased by at least Rs 60,000 crore in the coming Budget.

The Left said the provision for specific relief packages and interest subvention should be replaced by constituting a Farmer’s Debt Relief Commission, which would write off the debts for small and marginal farmers. The interest rate on farm loans should be brought down to 4 per cent.