Tax sops to cost Rs 30,000 cr: CPI-M

Maintaining that the tax concessions announced by the government will only 'beautify' its balance sheets, the Communist Party of India-Marxist said on Wednesday the measure would not do anything to bring the country's economy out of recession.

"Government is barking up the wrong tree. It is pursuing a course that will not solve the problem of recession. These concessions will cost Rs 30,000 crore (Rs 300 billion) to the exchequer.

"You cannot reduce the impact of recession, without increasing the purchasing power of the people," CPI-M Parliamentary Party leader Sitaram Yechury told reporters.

Attacking the government, Yechury said these concessions will only 'beautify their balance sheets. If the same money had been used for creating more jobs, the purchasing power of the common man would have increased, and this in turn would have shored up the economy'.

He claimed that the United Progressive Alliance government was still functioning under the neo-liberal framework and needs to come out of it.

"It should go in for massive level of public investments. At least now, it should work in proper direction," Yechury said.