Budget 2014: Union Budget 'corporate friendly' with focus on FDI, PPP: CPI

NEW DELHI: CPI today described the Union Budget as "fundamentally a corporate friendly" one and said the proposals to raise FDI on insurance and defence sectors will be "dangerous" for self-reliance and economic development of the country.

Reacting to the budget, CPI National Secretary D Raja slammed it, saying it was not very different from the budgets presented by the previous UPA government.

He said, "certain cosmetic measures have been announced to please a section of the middle class but fundamentally it is a corporate friendly budget with focus on PPP model and FDI."

"Increasing the FDI in insurance and defence to 49 per cent will be dangerous for self reliance and economic growth and development of the country," he said.

Presenting the budget, Finance Minister Arun Jaitley proposed to raise the foreign investment limit to 49 per cent in the insurance and defence sectors.

Raja said certain budget proposals will weaken the domestic financial sector.