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

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]

India News

Congress Dismisses Karnataka Leadership Transition Rumors After Six-Hour Delhi Meet

The Congress party has rejected ongoing rumors regarding a leadership change or a rotating Chief Minister formula in Karnataka, stating that a recent six-hour meeting in Delhi focused strictly on the upcoming Rajya Sabha and MLC elections.

Published

on

The Congress party has strongly downplayed the intense political buzz surrounding a potential leadership transition or a change in the Chief Minister’s post in Karnataka. Following a marathon six-hour meeting with the state’s top leadership in New Delhi, the party explicitly rejected the ongoing speculation, labeling it as having “no reality.”

A brief statement issued to the media after the high-level meeting advised against spreading rumors, clarifying that the discussions were entirely centered on upcoming electoral strategies rather than structural changes within the state government. The party stated that the deliberations solely revolved around the state’s three vacant Rajya Sabha seats and the upcoming Member of Legislative Council (MLC) elections.

Rajya Sabha and MLC Polls Take Center Stage

The high-stakes meeting was attended by Congress President Mallikarjun Kharge, senior leader Rahul Gandhi, and party General Secretary KC Venugopal, alongside Karnataka Chief Minister Siddaramaiah and Deputy Chief Minister DK Shivakumar.

Briefing the media post-meeting, KC Venugopal stated that conversations were strictly confined to the Rajya Sabha and MLC elections, emphasizing that there is no truth to any other political speculation. Chief Minister Siddaramaiah also confirmed that the agenda of a potential cabinet expansion or a leadership shift did not come up during the six-hour-long discussion.

Background of the Power Struggle

The question of leadership in Karnataka has remained a recurring theme for over a year. Supporters of Deputy Chief Minister DK Shivakumar have consistently maintained that the central leadership promised a rotating Chief Ministership arrangement when the government was formed after the 2023 assembly elections.

Speculation had intensified recently as the ruling government faced local anti-incumbency pressures alongside renewed political activity from the opposition bench. Some internal reports had even indicated a push from within certain sections of the high command, including Priyanka Gandhi Vadra, for a leadership revamp.

Balancing Caste Equations and Party Structure

The central leadership has navigated the situation cautiously to maintain political stability. Chief Minister Siddaramaiah, 80, commands a powerful “Ahinda” support base—a coalition comprising minority communities, backward classes, and Dalits. This social alliance was crucial in helping the party navigate the traditional Vokkaliga and Lingayat caste dynamics during the 2023 elections.

Although the rotation issue had previously gained significant momentum when the government completed two years in office, the party high command had chosen to maintain the status quo to avoid any adverse electoral impact in neighboring assembly elections, such as in Tamil Nadu. With those elections concluded, supporters of the 64-year-old Deputy Chief Minister had expressed optimism for a transition. Shivakumar currently holds the dual responsibility of being the Deputy Chief Minister as well as the state Congress chief, signaling his critical organizational value to the party. However, for the time being, the party high command has firmly signaled that the current leadership structure will remain unchanged.

Continue Reading

India News

Congress high command steps in to resolve Karnataka leadership impasse with crucial Delhi meeting

The Congress leadership, including Mallikarjun Kharge and Rahul Gandhi, is holding a vital meeting in Delhi with Karnataka Chief Minister Siddaramaiah to find a definitive solution to the state’s prolonged leadership impasse.

Published

on

The top leadership of the Congress party is scheduled to hold a high-level meeting at its headquarters in the national capital today morning to address the long-standing leadership dispute in Karnataka. Senior leaders, including party president Mallikarjun Kharge and MP Rahul Gandhi, will lead the discussions aimed at resolving the continuous friction between Chief Minister Siddaramaiah and Deputy Chief Minister DK Shivakumar.

The ongoing power struggle over the state’s top position has persisted since the party’s electoral victory in 2023. For the current session, only Chief Minister Siddaramaiah has been called to join the discussions in Delhi. When questioned about the agenda by reporters, the Chief Minister stated that he was unaware of the specific subjects to be discussed, noting that political speculation is inevitable.

Background of the internal division

The internal friction intensified significantly in November 2025 when the state government completed its two-and-a-half-year mark in office. Supporters of the Deputy Chief Minister pointed to a purported unacknowledged internal arrangement suggesting a rotational chief ministership split equally across the five-year term. Despite multiple prior interventions by central party leadership to manage the internal friction, a permanent resolution has remained elusive.

While Deputy Chief Minister DK Shivakumar has not been invited to this morning’s initial session, indications suggest that separate individual discussions and a potential joint meeting involving both leaders are planned as part of the broader resolution process. Observers note that several state ministers and legislators have also traveled to the national capital as the party leadership aims to settle the administrative roadmap and finalise leadership plans before the next assembly elections.

Continue Reading

India News

No uniform civil code provisions will be imposed on tribals, clarifies Amit Shah

Union Home Minister Amit Shah has assured tribal communities that the proposed Uniform Civil Code will not interfere with their customs, urging them not to be misled by misinformation.

Published

on

Union Home Minister Amit Shah on Sunday declared that the proposed Uniform Civil Code (UCC) will not impact tribal populations in any manner. He called upon the community to stay vigilant against “conspiracies” and misinformation circulating on the subject.

Addressing the Janjati Sanskritik Samagam—a tribal conclave organized by the Janjati Suraksha Manch at the Red Fort grounds to mark the 150th birth anniversary year of Birsa Munda—Shah stated that specific provisions have been implemented in states ruled by the ruling party to exclude tribal communities from the scope of the code.

Clarification on customs and traditions

The Home Minister highlighted that a deliberate narrative has emerged suggesting the proposed legislation would strip tribal societies of their distinct culture, traditions, and customary lifestyles.

He explicitly clarified that the central government has no intention of forcing UCC regulations upon tribal or Vanvasi communities. Shah pointed out that where regional administrations have initiated the code, care has been taken by the leadership to ensure that indigenous populations remain fully outside its jurisdiction. He requested attendees to disseminate this assurance deeply into forest zones and rural villages to erase lingering apprehensions.

Focus on security and community development

Beyond the legislative framework, Shah detailed the progress made toward curbing internal security threats, stating that the nation is steadily advancing toward eradicating Naxalism entirely. He noted that violent disruptions had severely restricted progress in these belts for decades, leading to the loss of thousands of tribal lives. According to the minister, regional stability will now pave the way for accelerated development across remote hills and forests.

The address also covered constitutional rights regarding personal faith. Shah mentioned that the original framework of the Constitution grants every citizen the dignity to practice their traditional beliefs without facing coercion, temptation, or material inducement for religious conversion.

Reflecting on financial allocations, the minister criticized earlier political administrations for keeping tribal welfare funding low. He underscored that the current administration under Prime Minister Narendra Modi significantly elevated the dedicated tribal budget from a previous Rs 28,000 crore to Rs 1.54 lakh crore. Terming the vast gathering a historical movement for cultural preservation, Shah described the societal awakening as a major step toward safeguarding tribal heritage for future generations.

Continue Reading

Trending

© Copyright 2022 APNLIVE.com