English हिन्दी
Connect with us

Latest Politics News

‘Interim’ only in name, an Election Budget in offing; may leave a massive burden for next govt

Published

7 years ago

on

‘Interim’ only in name, an Election Budget in offing; may leave a massive burden for next govt

[vc_row][vc_column][vc_column_text]What many have been speculating has been given added credence by Finance Minister Arun Jaitley: that the interim budget – an outgoing government presents only a vote on account rather than a full-fledged budget – would be much more than that.

It would be an Election Budget and it may make the previous budgets under Narendra Modi government look like interim budgets. The measures planned by the government are likely to leave the successor government with a bill of over Rs 1 lakh crore, according to a report in The Economic Times (ET).

Speaking at CNBC-TV18’s Indian Business Leader Awards on Thursday, Jan 17, Jaitley, via video conference, said the government could break with convention and make the February 1 exercise more significant than a vote on account.

There is speculation that the government is studying various options, including a cash handout for farmers, to ease their distress and to shore up popular support before the national election that’s due by May. The government has already exceeded its budget deficit targets in October.

Jaitley, while dismissing fears that he is under pressure to present a populist budget after the recent election debacle in three states and ahead of general elections in April-May, ended up confirming the government’s worry and nervousness.

Jaitley said: “The NDA (National Democratic Alliance) government had been in this game for far too long to have nervousness about the budget. We are confident and proud of our performance over the last five years. The NDA government has succeeded in restoring the credibility of the economy and its decision making process over last few years”

In a regime that tends to equate ‘nation’ and ‘nationalism’ with itself, Jaitley said, “Convention has always been that election year Budget is an interim Budget. The larger interest of the nation dictates what will be a part of the interim Budget.”

“If we look at the big picture there have been successes that we have seen in the last few years. There have also been challenges. Therefore, without getting into the specifics, because that would really be disclosing the mind with which we are working, some of those challenges cannot afford to wait,” Jaitley said.

The government has recently announced a series of measures to try to win over farmers, small business owners and the less well-off, after the BJP suffered setbacks in state elections and with a general election due in months.

The measures are likely to be a drain on finances when Modi government is trying to stick to a decade-low fiscal deficit target of 3.3 per cent of the gross domestic product (GDP).

It has, however, promised even more perks ahead of the general election due by May.

“They will be for development, they will be for transformation,” Union Law Minister Ravi Shankar Prasad had said in Parliament, saying people should more “sixes during the slog overs”. Translated, it means more inducements for the electorate when elections are near.

Media reports suggest that the Centre is considering various options to address the agricultural distress in the country, one of them is cash handout for farmers. The deliberation over this began after the BJP was voted out in three key state elections in December.

If the government is planning to extend any relief to the farmers, it will impact India’s fiscal deficit which has already reached 114.8 percent of the budgeted target in November. Experts say that the government may not be able to stick to its deficit target this year.

In recent weeks, there has also been buzz of tax cuts for the middle class and other measures in the government’s economic statement ahead of Lok Sabha polls.

The FM said that the government will try to stick to its path of fiscal prudence, but he also added that in “unusual situations”, a deviation from the fiscal consolidation path might be required, which was understood by the markets and analysts.

Talking about the urgent need to uplift the farm sector, Jaitley said, “Whether it is a situation like a natural calamity or a drought or stress in a particular sector — these are all areas which cannot be considered any kind of populist expenditure. Markets will never understand if you act for the sake of populism,” he said. “But if it is in the larger interest because of a compelling situation that develops, I think then it is a rational, logical thing, which markets will also understand,” he added.

Asked on a reduction in interest rates amid slowing inflation, Jaitley suggested there was need for RBI to pare policy rates without making an explicit comment. “We can’t have real interest rates (after budgeting for inflation) higher than anywhere in the world,” he said, adding that the central bank has begun consultations with stakeholders.

What Jaitley said needs to be seen in context of statements of Ravi Shankar Prasad and some others, and the Modi government may make a short-term gain politically but may be disastrous for the economy.

A report in the ET said the vote-catching measures planned by Modi as he braces for a difficult general election may cost more than Rs 1 lakh crore which would have to be borne by the government that will take charge after the election due by May.

The spending is also likely to delay plans to reduce the government’s budget deficit, a key indicator of the nation’s economic health.

Jaitley talked of the need for fiscal prudence but kept an escape route open for “unusual situations”. The BJP’s economic affairs spokesman, Gopal Krishna Agarwal, told Reuters this week that the party does not consider the finance ministry’s plan to keep the fiscal deficit to 3.3 percent of gross domestic product in the current April-March fiscal year as “sacrosanct”.

“Addressing farmer distress is the most important thing,” Agarwal told Reuters. “You need an expansionary policy. You chase growth in the economy, you do not chase these parameters like fiscal deficit.”[/vc_column_text][/vc_column][/vc_row]

Related Topics:
Continue Reading

India News

Mamata Banerjee warns BJP, EC over Bengal polls, says they will be accountable

Mamata Banerjee holds BJP and Election Commission responsible for any incidents during Bengal polls, raising concerns over officer transfers.

Published

8 hours ago

on

March 17, 2026

By

West Bengal Chief Minister Mamata Banerjee has held the Bharatiya Janata Party (BJP) and the Election Commission of India responsible for any untoward incidents in the state during the upcoming assembly elections, following the transfer of key officials.

Addressing concerns over administrative reshuffles, Banerjee said that changes involving senior bureaucrats, including the chief secretary and home secretary, could affect governance and law and order in the state during a crucial period.

The Trinamool Congress chief also announced candidates for 291 constituencies for the elections scheduled to be held in two phases on April 23 and 29.

Criticising the Election Commission, Banerjee alleged that the transfers were being carried out in a manner that benefits the BJP. She questioned the timing of the decisions and said such actions weaken the state administration at a sensitive time.

She further raised concerns about disaster management and essential services, stating that experienced officials familiar with the state’s situation have been replaced. According to her, this could impact administrative efficiency if any emergency arises before the new government is formed.

Protecting Bengal’s identity

Banerjee emphasised that the election is not merely about forming a government but about safeguarding Bengal’s identity and existence. She accused the BJP of misusing central agencies and attempting to influence the electoral process.

She urged that elections should be conducted peacefully, without external interference, and in line with democratic principles. The chief minister also expressed confidence that her party would return to power with a stronger mandate.

Appealing to voters, she called for support for the Trinamool Congress, asserting that the people of Bengal will ultimately decide the outcome and protect their democratic rights.

Continue Reading

India News

Mamata Banerjee writes to poll chief over officers’ reshuffle, calls move arbitrary

Mamata Banerjee has written to the Chief Election Commissioner, calling the reshuffle of senior Bengal officials arbitrary and raising concerns over constitutional norms.

Published

19 hours ago

on

March 17, 2026

By

mamta banerjee

West Bengal Chief Minister Mamata Banerjee has written to Chief Election Commissioner Gyanesh Kumar, raising strong objections to the recent reshuffle of senior bureaucrats in the state ahead of the assembly elections.

In her letter, Banerjee described the move by the Election Commission of India as “arbitrary” and expressed “deep concern” over what she termed a unilateral decision. She urged the Commission to refrain from adopting such measures in the future.

The Chief Minister pointed out that while the Election Commission does have the authority to make administrative changes during elections, past practice has involved consultation with the state government. According to her, the Commission would typically seek a panel of officers from the state and make its selections from that list, maintaining what she called constitutional propriety and administrative convention.

Banerjee warned that bypassing this process could undermine the institutional credibility and long-standing legacy of the poll body, and may also affect the foundational principles of the constitutional framework.

The controversy stems from the Commission’s decision, taken soon after announcing election dates, to remove several top officials from election-related duties. These include the state’s Chief Secretary, Director General of Police, Kolkata Police Commissioner, and Home Secretary.

The Commission has maintained that the reshuffle was aimed at ensuring a peaceful and violence-free electoral process.

Reacting sharply, Banerjee alleged bias in the decision-making, claiming that the removal of the Chief Secretary indicated an anti-women stance. She also accused the Commission of selectively targeting officers, suggesting that the move favoured individuals aligned with the Bharatiya Janata Party.

Meanwhile, the Trinamool Congress escalated its protest, staging a day-long walkout from the Rajya Sabha earlier in the day.

Responding to the criticism, Parliamentary Affairs Minister Kiren Rijiju said the Election Commission is a constitutional authority, adding that questioning its decisions in Parliament is inappropriate and unproductive.

The Commission has appointed a new Chief Secretary in place of the outgoing official as part of the reshuffle.

Continue Reading

India News

BJP releases first list of 47 candidates for Kerala assembly polls

The BJP has released its first list of 47 candidates for the Kerala Assembly elections scheduled for April 9, including three former Union ministers.

Published

1 day ago

on

March 16, 2026

By

BJP releases list of candidates

The Bharatiya Janata Party (BJP) on Monday released its first list of 47 candidates for the upcoming Kerala Assembly elections scheduled for April 9.

Voting will take place for all 140 seats in the state assembly, with counting of votes scheduled for May 4. A party or coalition needs at least 70 seats to secure a majority in the House.

Among the candidates announced in the first list are three former Union ministers — Rajeev Chandrasekhar, V. Muraleedharan and George Kurian.

Key candidates announced

Kerala BJP chief and former Union minister Rajeev Chandrasekhar has been fielded from the Nemom assembly constituency. In the 2024 Lok Sabha election, Chandrasekhar lost the Thiruvananthapuram seat to three-time MP Shashi Tharoor, but he led in the Nemom assembly segment during that contest. The party believes this performance strengthens its prospects in the constituency.

Nemom has held political significance for the BJP since 2016, when senior leader O. Rajagopal won the seat and became the party’s first-ever MLA in the 140-member Kerala Legislative Assembly. The victory marked the BJP’s initial breakthrough in the state assembly.

However, the seat returned to the Left camp in the 2021 Assembly election when V. Sivankutty defeated BJP leader Kummanam Rajasekharan.

Former Union minister V. Muraleedharan will contest from the Kazhakoottam constituency, while George Kurian has been nominated from Kanjirappally.

Other candidates in the list

According to the list released by the party, several other candidates have also been announced for key constituencies. P. C. George will contest from Poonjar, R. Sreelekha from Vattiyoorkavu and Padmaja Venugopal from Thrissur.

The BJP has also nominated Sobha Surendran from Palakkad, Navya Haridas from Kozhikode North and Kavitha K. S. from Sulthanbathery, a reserved constituency.

Raji Prasad will contest from the Kunnathur seat reserved for Scheduled Castes, while R. Rashmi has been fielded from Kottarakkara.

Political backdrop in Kerala

Kerala’s electoral politics has traditionally alternated between the Left Democratic Front (LDF) and the Congress-led United Democratic Front (UDF). However, the BJP has been attempting to expand its presence in the state.

The alternating trend was interrupted in the 2021 Assembly election when the electorate returned the Pinarayi Vijayan-led government to power for a second consecutive term.

The BJP believes recent electoral performances and local body successes have strengthened its position as it prepares to contest the upcoming assembly polls.

Continue Reading

Trending

© Copyright 2022 APNLIVE.com