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No Vote on Account; Modi govt presents an election Budget ‘interim’ only in name

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[vc_row][vc_column][vc_column_text]Interim Finance Minister Piyush Goyal broke the proprietary norm and convention today (Friday, Feb 1) to make provisions for the whole year in what he had called an ‘Interim Budget’, and introducing a host of new schemes to woo various sections of the population.

(See provisions below)

The norm is that when the country is headed for a general election to elect the next government, the incumbent government presents an interim budget, which is essentially a vote-on-account to meet the government’s expenses and keep the ongoing schemes running till the next government assumes charge after the elections. Goyal has made provisions for the whole year.

Moreover, the ‘interim budget’ presented today probably has more new programmes than the regular, full-fledged budgets Modi government came up with in the previous years. The new provisions quite openly aim to woo various sections of the population: an ‘election budget’, if ever there was one. It is likely to leave for the next government the dual problem of a huge bill and depleted funds.

Former finance minister and Congress leader P Chidambaram‏ commented: “It was not a Vote on Account. It was an Account for Votes.”

In his reaction to the budget, Leader of Congress in Lok Sabha Mallikarjun Kharge said: “You have a mandate up to May and instead they have presented a full year’s budget and are trying to befool the people of the country, keeping elections in mind.”

“These are only election sops and ‘jumlas’, as they had been speaking about ‘jumlas’ in the past,” he said about the proposals.

Be that as it may, the Budget is sure to appeal to many – and win back some of the goodwill Modi government has lost, even though it does not address the problem of joblessness and job losses.

He announced a slew of measures, mainly to benefit the middle class, address the agrarian distress, and bolster industry.

For the common citizen, the government announced full tax rebate for individuals having annual income up to Rs 5 lakh, while people with gross income up to Rs 6.5 lakh will not need to pay any tax if they make investments in provident funds and prescribed equities.

Other key measures announced by the FM were an annual benefit transfer of Rs 6,000 to each marginal farmer — with a landholding of less than 2 hectares — at a total cost of Rs 75,000 crore to the exchequer. Under the scheme, fully funded by the central government and effective from December 2018, would involve three payment transfers of Rs 2,000 each to a farmer every year.

In another important announcement, the government announced a mega pension scheme, PM Shram Yogi Mandhan, for people in the unorganised sector. Under this scheme, the government to provide a pension of Rs 3,000 a month to people in the unorganised sector after they turn 60 years old.

FM Goyal also announced that the gratuity limit for the salaried class would be increased from Rs 10 lakh to Rs 30 lakh, and he hoped that India would become a $5-trillion economy in five years’ time.

 

FOR INDIVIDUALS

Individuals with income up to Rs 5 lakh will not have to pay any income tax

Individuals with income up to Rs 6.5 lakh will not need to pay any tax if they make investments in PFs, prescribed equities

Standard Deduction raised to Rs 50,000/yr from Rs 40,000/yr

No TDS on house rent up to Rs 2.4 lakh per year

No TDS on bank, post office interest up to Rs 40,000, up from Rs 10,000

Gratuity limit increased from Rs 10 lakh to Rs 20 lakh

Income Tax returns to be processed within 24 hours and returns will be paid immediately

All assessment and verification of IT returns will be done electronically, without any intervention by officials

GoM to suggest ways to reduce GST for house buyers

Direct tax collections increased from Rs 6.38 trillion in 2013-14 to almost Rs 12 trillion

Tax base up from Rs 3.79 crore to 6.85 crore

 

 

FOR FARMERS

In a bid to woo the farming community ahead of the Lok Sabha elections, interim Finance Minister Piyush Goyal in his Budget speech on Friday announced a Rs 6,000 per annum direct cash transfer for farmers owning land less than two hectares.

Called Pradhan Mantri Kisan Samman Nidhi, the much-anticipated move will benefit about 12 crore small and marginal farmers and will come into effect retrospectively from December 1, 2018, and the first instalment will be disbursed before the elections.

“The amount will be transferred directly to bank accounts of farmers in three equal installments. The programme will be funded 100 per cent by the Central government. Twelve crore farmer families will benefit. The first installment will be issued soon after preparing a list,” Goyal said.

The scheme will cost the government Rs 75,000 crore per year. Goyal said Rs 20,000 crore has been earmarked for this financial year. Besides the PMKSN scheme, Rs 60,000 crore has also been set aside for rural employment scheme MGNREGA.

There are 12.56 crore marginal and small farmers having less than 2 hectares (5 acre) holdings. If Rs 6,000 is paid to each farmer, the total outlay will be Rs 75,360 crore.

There were speculations that the government may announce a flat cash transfer to all identified beneficiaries similar to Odisha’s Kalia scheme or one based on a per-acre basis like Telangana’s Rythu Bandhu scheme.

Pradhan Mantri Kisan Samman Nidhi is a modification of the Rythu Bandhu scheme of the Telangana government, which provides assistance on a per-acre basis (Rs 8,000 per acre per year) without any holding size limit.

The government also announced a financial package for farmers, the Pradhan Mantri Kisan Samman Nidhi scheme, under which each farmer will receive an amount Rs 6000 directly in their bank accounts every year. A sum of Rs 75,000 crore has been allocated for the scheme

 

Proposals for farmers in a nutshell

Rs 6,000 to be transferred into accounts of small farmers who have less than 2 hectares land

Farmers to be provided Rs 6,000 per year in three installments, to be fully funded by the central government

This will benefit 12 crore farmers, at an estimated cost of Rs 75,000 crore

MSP hike by 1.5 times the production cost for all 22 crops

2% interest subvention to farmers who pursue animal husbandry, fisheries jobs through Kisaan credit cards

Farmers to get 5% subvention on timely loan repayment[/vc_column_text][/vc_column][/vc_row]

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PM Modi accuses Congress of anti-Sikh bias over Rahul Gandhi’s ‘traitor’ remark

Prime Minister Narendra Modi accused Rahul Gandhi of targeting BJP MP Ravneet Singh Bittu with a ‘gaddar’ remark because of his Sikh identity while speaking in the Rajya Sabha.

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PM Modi

Prime Minister Narendra Modi on Wednesday launched a sharp attack on Leader of the Opposition Rahul Gandhi, alleging that his “traitor” remark against BJP MP Ravneet Singh Bittu reflected the Congress party’s animosity towards the Sikh community.

The Prime Minister made the remarks in the Rajya Sabha while replying to the motion of thanks on the President’s address. Referring to an incident in the Parliament complex a day earlier, Modi said Gandhi’s comment had crossed all limits of political decency.

The controversy stems from a protest by suspended Opposition MPs, during which Ravneet Singh Bittu — a former Congress leader who joined the BJP ahead of the 2024 Lok Sabha elections — allegedly made a remark suggesting the protesters were behaving as if they had won a war.

In response, Rahul Gandhi was heard saying, “A traitor is walking by, look at his face,” before approaching Bittu and extending his hand. Gandhi then reportedly added, “Hello, brother. My traitor friend. Don’t worry, you will come back.”

Bittu refused to shake hands with the Congress leader and instead described him as an “enemy of the country” before walking away from the scene.

While the Congress later clarified that Gandhi’s remark was aimed at Bittu for leaving the party, the BJP seized upon the comment, calling it an insult to the Sikh community. Protests were subsequently held by members of the Sikh community outside the Congress headquarters and at other locations.

Addressing the House, Prime Minister Modi said that many leaders had quit the Congress in the past and that the party itself had split multiple times, but none of those leaders had been labelled a traitor. “He called this MP a traitor because he is Sikh,” the Prime Minister alleged, as treasury bench members raised slogans condemning the remark.

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PM Modi skips Lok Sabha reply as protests force repeated adjournments

PM Modi did not deliver his Lok Sabha reply today after sustained Opposition protests led to repeated adjournments over a dispute involving Rahul Gandhi’s proposed speech.

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PM Modi

Prime Minister Narendra Modi did not deliver his scheduled reply to the Motion of Thanks on the President’s address in the Lok Sabha today after sustained Opposition protests led to multiple adjournments of the House.

The disruption followed an escalation of tensions linked to Congress leader Rahul Gandhi’s proposed speech and the suspension of eight Opposition MPs a day earlier. The situation worsened after remarks made by BJP MP Nishikant Dubey during the proceedings.

Dispute over references to books sparks fresh ruckus

The controversy intensified when Nishikant Dubey responded to Rahul Gandhi’s demand to speak on national security and references to the unpublished memoirs of former Army chief General MM Naravane. Dubey said that while Gandhi wanted to quote from an unpublished book, he himself had brought several books that, according to him, made claims about the Gandhi family.

As Dubey began listing these books and their contents, strong protests erupted from Opposition members. Krishna Prasad Tenneti, who was presiding over the House at the time, cited Rule 349, which restricts members from reading out books, newspapers, or letters unless directly related to parliamentary business. Despite repeated warnings, the matter remained unresolved, leading to another adjournment.

Rahul Gandhi accuses government of silencing debate

Earlier in the day, Rahul Gandhi alleged that he was being prevented from speaking on an issue of national importance. He claimed the government was uncomfortable with references to General Naravane’s memoirs, which he said discussed the handling of the 2020 China border crisis.

In a social media post, Gandhi said he intended to present the Prime Minister with a book authored by the former Army chief, adding that some cabinet ministers had even questioned the existence of the book. He also wrote to Lok Sabha Speaker Om Birla after the suspension of eight Opposition MPs, alleging that parliamentary debate was being curtailed.

After it became clear that the Prime Minister would not speak in the House today, Gandhi posted that PM Modi had avoided Parliament because he was “scared” to face the truth. Congress MP Priyanka Gandhi Vadra echoed the allegation, claiming the Prime Minister was unwilling to enter the House.

Proceedings disrupted throughout the day

Lok Sabha proceedings were first adjourned until 2 pm amid loud protests over the issue linked to Naravane’s memoirs. Even after the House reconvened, disruptions continued, preventing normal business from resuming.

Later, Congress MPs staged a demonstration outside the Parliament complex, demanding that Rahul Gandhi be allowed to speak on the President’s address.

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President’s Rule revoked in Manipur as NDA set to form new government

President’s Rule has been withdrawn in Manipur nearly a year after its imposition, paving the way for a new NDA-led government under Yumnam Khemchand Singh.

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President rule invoked in Manipur

President’s Rule has been revoked in Manipur nearly a year after it was imposed, clearing the way for the formation of a new government led by the BJP-led National Democratic Alliance (NDA). The decision came hours before the scheduled oath ceremony of the new council of ministers.

Chief minister-designate Yumnam Khemchand Singh is set to take oath later this evening, along with other NDA legislators who will formally join the new government. The revocation brings an end to central rule that had been in place since February 2025, following the resignation of then chief minister N Biren Singh.

Assembly status during central rule

During the period of President’s Rule, the Manipur Legislative Assembly remained in suspended animation, meaning it was neither functioning nor dissolved. With the restoration of the elected government, legislative activity is expected to resume.

Khemchand Singh, 61, belongs to the Meitei community. Two deputy chief ministers have been named to reflect Manipur’s ethnic diversity. Nemcha Kipgen, from the Kuki community, and Losii Dikho, from the Naga community, are set to take charge as deputy chief ministers.

According to people with direct knowledge of the matter, Nemcha Kipgen is likely to take oath from a Manipur government guesthouse in Delhi.

Key portfolios and leadership choices

Seven-time MLA from Bishnupur district, Govindas Konthoujam, said he has been entrusted with the Home portfolio. Emphasising stability and law and order, he said he remains committed to serving the state with discipline and restraint.

Sources said Khemchand Singh is viewed within the party as a non-polarising leader who is acceptable across internal factions at a time of political transition. While he is yet to be tested in governance, he is seen as a steady administrative choice capable of providing organisational discipline and continuity amid uncertainty.

Uneasy peace continues in Manipur

The formation of the new government comes against the backdrop of continued tension in Manipur, nearly three years after violence erupted between the Meitei community in the valley areas and the Kuki tribes in several hill districts.

A section of Kuki groups has been demanding a separate administrative arrangement, with negotiations involving multiple insurgent groups operating under two umbrella organisations that are signatories to the suspension of operations agreement.

In recent weeks, some Kuki civil society organisations have stated they would not participate in the Manipur government and have distanced themselves from Kuki MLAs expected to join the new administration.

A day before the announcement of the new government, Kuki leader Paolienlal Haokip posted on X that representatives of the Kuki Zo people could not take part in leadership selection without justice and a written commitment for political settlement.

Diverging demands from communities

Meitei civil society groups have maintained that all internally displaced persons should be allowed to return home safely, even as dialogue continues. However, Kuki leaders have insisted that a political solution in the form of a separate administration must come first, before discussions on rehabilitation and return from relief camps.

Meitei leaders have countered this position, arguing that the demand reflects an ethnocentric territorial claim and that humanitarian issues should be addressed alongside negotiations, as no area is exclusively inhabited by a single community.

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