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

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‘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]

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Delhi CM Atishi accuses BJP’s Parvesh Verma of distributing cash to voters in Kejriwal’s constituency

Kejriwal also hinted that the BJP might declare Parvesh Verma as their chief ministerial candidate, questioning whether the people of Delhi would want such a leader.

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Delhi Chief Minister Atishi on Wednesday accused BJP leader Parvesh Verma of handing out cash to women in New Delhi, the constituency represented by Aam Aadmi Party (AAP) convenor Arvind Kejriwal.

During a press conference, Atishi claimed that Rs 1,100 was distributed to women from slum areas at Verma’s residence in Windsor Place, with their voter ID details being recorded. She stated, “The BJP is distributing money and checking voter cards in the New Delhi assembly constituency, where Arvind Kejriwal is a candidate.

Today, Parvesh Verma was caught red-handed giving out money at his official residence, money he received as an MP. Women from various slums in the New Delhi area were called there and handed Rs 1,100 in an envelope,” ANI reported her as saying.

Earlier in the day, Kejriwal had alleged that women voters in his constituency were being paid Rs 1,100 for their votes. “I have just returned from several areas in my New Delhi Vidhan Sabha constituency, and everywhere I went, people told me that these individuals are openly buying votes, paying Rs 1,100 for each vote. People said they would take the money but wouldn’t vote for them,” he posted on X.

Kejriwal also hinted that the BJP might declare Parvesh Verma as their chief ministerial candidate, questioning whether the people of Delhi would want such a leader.

In response to the accusations, Parvesh Verma stated that the money was distributed as part of a campaign by ‘Rashtriya Swabhiman’, an NGO founded by his late father, former Delhi Chief Minister Sahib Singh Verma.

“I see the struggles faced by women that Arvind Kejriwal has ignored for 11 years. They have been suffering, so I decided to support them with Rs 1,100 per month. Unlike Arvind Kejriwal, I am not distributing liquor; I am glad to be able to help people,” he said.

Verma added that the Rashtriya Swabhiman has been actively involved in community support, including redevelopment efforts in villages affected by disasters. Elections for the 70-member Delhi Assembly are scheduled for February next year.

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Yogi Adityanath says Congress insulting Ambedkar since Nehru days

Adityanath pointed to examples of Congress’ alleged negligence, including its initial hesitance to include Ambedkar in the Constituent Assembly and the Drafting Committee, crediting Mahatma Gandhi for securing Ambedkar’s position.

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Uttar Pradesh Chief Minister Yogi Adityanath on Tuesday hit out at the Congress, accusing it of disrespecting B.R. Ambedkar, the principal architect of the Indian Constitution, both during his life and after his death.

During a press conference held at his official residence at 5 Kalidas Marg, he also claimed that Jawaharlal Nehru, India’s first Prime Minister, opposed Ambedkar’s inclusion in the Constitution Drafting Committee.

Adityanath’s comments came in the wake of a controversy sparked by Union Home Minister Amit Shah’s remarks about Ambedkar in the Rajya Sabha last week. Surrounded by ministers Swatantra Dev Singh and Asim Arun, the Chief Minister emphasised that the purpose of the press conference was to reveal what he called the unethical and unconstitutional actions of Congress and other opposition parties against Ambedkar.

“Dr. B.R. Ambedkar played a pivotal role in India’s freedom struggle, the formulation of the Constitution, and the foundational years of an independent India. Despite facing numerous societal challenges, he achieved the highest accolades in law, finance, and economics. His contributions to the nation are unmatched, and he is deeply revered by every Indian,” Adityanath stated.

He contrasted the Bharatiya Janata Party’s (BJP) respect for Ambedkar with the Congress party’s history of disrespect. Adityanath highlighted the BJP’s initiatives to honor Ambedkar’s legacy, including memorials in significant locations like Mhow, Nagpur, Mumbai, and London, where Ambedkar pursued his studies.

“Under BJP leadership, from Atal Bihari Vajpayee’s time to Prime Minister Narendra Modi’s tenure, we have made every effort to uphold Ambedkar’s ideals. In stark contrast, the Congress has consistently insulted him and minimised his contributions,” he asserted.

Adityanath pointed to examples of Congress’ alleged negligence, including its initial hesitance to include Ambedkar in the Constituent Assembly and the Drafting Committee, crediting Mahatma Gandhi for securing Ambedkar’s position.

He also recalled an incident during the UPA regime when a textbook depicted a derogatory cartoon of Ambedkar being prodded by Nehru, which was withdrawn only after widespread protests, leading to an apology from then HRD Minister Kapil Sibal.

The Chief Minister claimed that the Congress worked to defeat Ambedkar in elections, including the 1952 general elections for the Mumbai North constituency and the 1954 by-elections.

He alleged that even Nehru campaigned against Ambedkar to ensure his loss, asserting that the Congress consistently aimed to silence the voices of Dalits and marginalized communities.

Adityanath also criticised the Congress for not granting national honors to Ambedkar during his lifetime, stating, “It was only when a government supported by the BJP came to power that Ambedkar was finally awarded the Bharat Ratna.”

He further emphasised the BJP’s commitment to realizing Ambedkar’s vision through programs aimed at benefiting Dalits and marginalized groups, reiterating the party’s dedication to preserving Ambedkar’s legacy while accusing the Congress of ongoing disrespect and divisive politics.

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Government set to table One Nation, One Election bill in Lok Sabha on December 16

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Parliament Winter Session: Lok Sabha speaker warns opposition, No-Confidence motion against Rajya Sabha Chairman

The stage is set for a major legislative push by the central government as two bills related to the ambitious “One Nation, One Election” initiative are scheduled for introduction in the Lok Sabha on Monday, December 16.

Union Law Minister Arjun Ram Meghwal is expected to present The Constitution (129th Amendment) Bill and The Union Territories Laws (Amendment) Bill, marking a significant step towards implementing simultaneous Lok Sabha and state legislative assembly elections.

On Thursday, the Union Cabinet, chaired by Prime Minister Narendra Modi, gave its nod to the constitutional amendment bill that seeks to align elections for the Lok Sabha and state assemblies. This decision underscores the ruling Bharatiya Janata Party’s commitment to its long-standing agenda of electoral synchronization, aimed at reducing the frequency of polls and associated costs.

The Cabinet also approved a supplementary bill to amend specific provisions related to three Union territories with legislative assemblies—Delhi, Puducherry, and Jammu & Kashmir. This aligns their governance framework with the overarching constitutional amendments proposed under the “One Nation, One Election” initiative.

The constitutional amendment bill aims to streamline the electoral calendar by establishing a legal framework for conducting Lok Sabha and state assembly elections simultaneously. However, the government has, for now, opted to exclude local body polls, such as those for municipalities and panchayats, from this framework. A high-level committee chaired by former President Ram Nath Kovind had earlier suggested a phased approach to include local elections in the future.

The concept of “One Nation, One Election” has been a focal point in political discourse, with proponents arguing it will enhance governance by reducing electoral disruptions and fostering policy stability. Critics, however, have raised concerns about the logistical and constitutional challenges of synchronizing diverse electoral cycles across India’s federal structure.

This legislative development will undoubtedly dominate parliamentary discussions as political parties prepare to deliberate on the feasibility and implications of reshaping India’s electoral landscape.

The introduction of these bills is expected to spark robust debate, with the government emphasizing the potential benefits of reduced administrative burdens and streamlined governance, while opposition parties scrutinize its impact on India’s democratic fabric.

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