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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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8 years ago

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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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Amit Shah praises Dharmendra Pradhan’s resignation, says Nation above post

Amit Shah hailed Dharmendra Pradhan’s resignation as Union Education Minister, saying BJP places the nation and students above any position while highlighting the government’s commitment to examination reforms.

Published

22 hours ago

on

July 26, 2026

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Amit Shah

Union Home Minister Amit Shah on Saturday praised Dharmendra Pradhan’s decision to step down as Union Education Minister, saying the move reflected the Bharatiya Janata Party’s commitment to placing the nation and students above any political position.

In a post on X, Shah said that for BJP workers, the country, its youth and students are more important than any office. He described Pradhan’s resignation as an example of the party’s guiding principle of prioritising national interest over personal ambition.

Shah highlights government’s focus on exam reforms

Amit Shah said the Narendra Modi-led government respects the sentiments of students and remains committed to strengthening the examination system following concerns over alleged paper leaks.

He said the Centre has introduced strict measures to ensure severe punishment for those involved in examination paper leaks and expressed confidence that these steps would deliver justice to students who cleared the National Eligibility-cum-Entrance Test (NEET).

Praises Pradhan’s work as Education Minister

Recalling Dharmendra Pradhan’s tenure, Shah highlighted several initiatives undertaken during his time in the Education Ministry. He credited Pradhan with helping implement the National Education Policy (NEP), expanding PM SHRI schools, promoting digital education, strengthening skill development and improving coordination between industry and academic institutions.

Shah also said Pradhan worked towards making examinations more inclusive and student-centric, adding that his tenure reflected his commitment to the vision of a developed India.

Resignation follows NEET controversy

Dharmendra Pradhan’s resignation comes amid nationwide protests over alleged irregularities in the NEET examination and growing demands for accountability.

The resignation has triggered political reactions across party lines. While opposition parties have described the development as a result of sustained student protests, BJP leaders have projected it as an example of accountability and commitment to national interest.

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Centre ready for NEET debate in Parliament, Rahul Gandhi’s paper leak claims to be investigated: JP Nadda

Union Health Minister JP Nadda said the government is prepared for a detailed Parliament debate on the NEET paper leak issue and will investigate Rahul Gandhi’s allegations of multiple paper leaks over the last decade.

Published

4 days ago

on

July 22, 2026

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JP-Nadda

The Centre has reiterated its willingness to hold a detailed discussion on the NEET paper leak issue in Parliament, with Union Health Minister JP Nadda saying the government is prepared for a debate of any duration. He also said Leader of the Opposition Rahul Gandhi’s allegations of around 152 examination paper leaks over the past 10 years would be investigated.

Government open to debate of any duration

Speaking to the media on Wednesday, JP Nadda said the government has consistently supported a discussion on the paper leak issue in Parliament. He stated that the Opposition could decide the duration of the debate through the Business Advisory Committee, whether it is a short discussion or one extending to 12 or even 18 hours.

Nadda, who is also the Leader of the House in the Rajya Sabha, said the government remains fully prepared for a comprehensive discussion and urged the Opposition not to shift its position on the issue.

Rahul Gandhi’s paper leak allegations to be examined

Responding to Rahul Gandhi’s recent presentation, Nadda said the Congress leader referred to nearly 150 paper leak incidents over the last decade. He described those claims as a matter that requires investigation and said the government would examine the allegations before presenting the facts to the public.

According to Nadda, a responsible government is committed to verifying such claims and ensuring that the truth is established through due investigation.

Calls for a united approach on NEET issue

Highlighting the significance of the matter, Nadda said the future of students should remain the top priority for both the government and the Opposition. He appealed to political parties to work together in finding a long-term solution to prevent examination irregularities.

He added that safeguarding the interests of students is a shared responsibility and called for constructive cooperation instead of political differences.

Nadda on meeting with CJP representatives

The Union Minister also spoke about his recent interaction with representatives of the Cockroach Janata Party (CJP). He said the meeting was held in a cordial atmosphere, during which the government listened to their concerns and asked them to submit their suggestions in writing.

Nadda said the government remains open to further discussions whenever required and clarified that no meeting with the group was held on Wednesday.

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Opposition demands Dharmendra Pradhan’s resignation before NEET discussion in Parliament

The Opposition has demanded Union Education Minister Dharmendra Pradhan’s resignation before any discussion on the NEET paper leak in Parliament, while the Centre says it is fully prepared for a debate.

Published

4 days ago

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July 22, 2026

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The political deadlock over the NEET paper leak issue continued in Parliament on Wednesday, with Opposition parties demanding the resignation of Union Education Minister Dharmendra Pradhan before any discussion takes place. The Centre, however, maintained that it is fully prepared to debate the matter during the ongoing Monsoon Session.

Leading the Opposition in the Rajya Sabha, Congress president Mallikarjun Kharge said there could be no fair discussion on the NEET issue unless Dharmendra Pradhan resigned from his post.

Centre rejects Opposition’s condition

Responding to the Opposition’s demand, Leader of the House JP Nadda said the government was not avoiding a discussion and remained open to debating all issues, including the alleged NEET paper leak.

He said the government had already made its position clear and described it as transparent, adding that it was willing to discuss every matter raised by the Opposition.

Parliamentary Affairs Minister Kiren Rijiju also reiterated that the Centre had been ready for discussions since the beginning of the Monsoon Session. He said the government had consistently conveyed its willingness to debate the NEET issue and other important matters.

Rijiju added that if the Opposition was looking for reasons to avoid a discussion, it would not be appropriate. According to him, the procedure and timing of the debate would be decided after consultations among all parties under the Chair’s guidance.

Opposition maintains resignation demand

The government also informed the House that its willingness to discuss the issue had been communicated to Congress leaders and representatives of other political parties.

Samajwadi Party chief Akhilesh Yadav echoed the Opposition’s stand, saying students were seeking the resignation of the Education Minister before any discussion. He asserted that the resignation should come first, followed by parliamentary debate on the issue.

Akhilesh Yadav also joined Rahul Gandhi and other Opposition MPs during a march towards the Prime Minister’s residence in New Delhi on Tuesday as part of the protest over the NEET controversy.

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