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

Published

8 years ago

January 18, 2019

‘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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Veeramani POCSO case: Vijay questions Stalin over earlier probe

Tamil Nadu Chief Minister Vijay has questioned MK Stalin over the handling of the Veeramani POCSO case, while Stalin has rejected allegations that the previous DMK government protected anyone.

Published

17 hours ago

September 25, 2026

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Tamil Nadu Chief Minister and Tamilaga Vettri Kazhagam (TVK) president C Joseph Vijay has questioned DMK president MK Stalin over the handling of the POCSO case involving Gem Granites founder R Veeramani. The political exchange follows renewed investigation into allegations involving minor girls.

Vijay’s remarks came as the ruling TVK stepped up its questions about how the case was handled during the previous DMK government. The party’s IT wing has alleged that the earlier investigation was weakened and questioned why a final report was filed.

The allegations have been rejected by the DMK. Stalin has said that no order was issued by the DMK government to protect anyone in the case and has called the allegations false and defamatory.

What did Vijay say about the Veeramani case?

Vijay questioned Stalin over the handling of the case and demanded an explanation from the former chief minister.

The TVK has specifically questioned why action was not taken against Veeramani during the previous administration and why the earlier investigation resulted in a closure report.

The party has also raised questions about the role of officials involved in the earlier investigation. These are political allegations made by the TVK and have not been established as facts.

What is the Veeramani POCSO case?

The case concerns allegations of sexual abuse of minors involving R Veeramani, the founder of Gem Granites.

The case came under renewed scrutiny after a special POCSO court rejected an earlier closure report and ordered further investigation. The expanded probe has subsequently identified additional alleged survivors who were minors at the time of the alleged offences, according to current reporting.

The investigation is also examining the circumstances surrounding the earlier probe and whether there were any lapses in how the case was handled.

What has MK Stalin said?

Stalin has rejected allegations that the previous DMK government protected Veeramani.

He has said that no order was issued by the DMK government to shield anyone in the case. Stalin has also said that everyone responsible for the alleged offences, including anyone who aided or attempted to protect the accused, should face the law.

The DMK president has further said that the focus should remain on securing justice for the affected girls rather than making political allegations.

Why has the case become a political issue?

The Veeramani case has become the subject of a political dispute between the ruling TVK and the DMK over the handling of the earlier investigation.

The TVK is questioning the previous government’s handling of the case, while the DMK has denied that it intervened to protect the accused.

At this stage, claims about political interference or deliberate weakening of the earlier investigation should be treated as allegations unless established by the ongoing investigation or judicial proceedings.

India News

Congress protests against Gyanesh Kumar, demands Election chief’s resignation

Congress workers took to the streets against Chief Election Commissioner Gyanesh Kumar, with protests and demonstrations held over the party’s allegations concerning the Election Commission.

Published

18 hours ago

September 25, 2026

APNLive Desk

Congress stepped up its campaign against Chief Election Commissioner Gyanesh Kumar, with party workers taking to the streets and demanding his resignation amid the ongoing row over the Election Commission.

The protests followed repeated criticism by Congress leaders of the poll panel and its functioning. The party has alleged irregularities in the electoral process and has sought accountability from the Election Commission.

Congress leaders have also targeted Gyanesh Kumar personally, with Rahul Gandhi among those calling for the Chief Election Commissioner to step down.

Congress takes protest to streets

Congress workers staged demonstrations in different places as part of the party’s campaign against the Election Commission.

The protests featured sharp symbolism, including masks and handcuffs, as Congress sought to highlight its allegations against the poll panel and demand action against Gyanesh Kumar.

The demonstrations are part of a wider confrontation between the Congress and the Election Commission over issues related to electoral rolls and the conduct of elections.

Congress demands Gyanesh Kumar’s resignation

The Congress has repeatedly demanded the resignation of Gyanesh Kumar, accusing the Election Commission of failing to adequately address the concerns raised by the opposition party.

Rahul Gandhi has also stepped up his criticism of the poll panel. In a statement on Thursday, he demanded that Gyanesh Kumar resign and alleged that the Election Commission had acknowledged the issue of “vote theft”. These are allegations made by the Congress and should not be treated as an established finding unless confirmed by the relevant authority.

The dispute comes amid a broader political debate over electoral rolls, voter verification and the functioning of the Election Commission.

Election Commission under opposition scrutiny

The Congress has intensified its campaign against the poll body in recent weeks, with party leaders repeatedly questioning its decisions and procedures.

The Election Commission, meanwhile, has maintained that India’s electoral process is conducted according to the Constitution, electoral laws and prescribed procedures. Chief Election Commissioner Gyanesh Kumar has previously defended the integrity of the electoral system and rejected claims that electronic voting machines can be remotely hacked.

The latest protests add to the continuing political confrontation over the Election Commission and the opposition’s demands concerning the poll panel’s functioning.

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Akhilesh Yadav launches SP’s 2027 UP poll campaign from Rahul Gandhi’s seat

Akhilesh Yadav launched the Samajwadi Party’s 2027 Uttar Pradesh Assembly election campaign from Rae Bareli, represented by Rahul Gandhi in the Lok Sabha.

Published

1 day ago

September 25, 2026

APNLive Desk

Samajwadi Party chief Akhilesh Yadav has formally begun the party’s campaign for the 2027 Uttar Pradesh Assembly elections, launching the outreach from Rae Bareli, the Lok Sabha constituency represented by Congress leader Rahul Gandhi.

Yadav travelled through the area on the party’s newly launched PDA Rath before addressing a public meeting. The campaign vehicle carries the Samajwadi Party’s PDA messaging, referring to its focus on backward classes, Dalits and minorities.

Akhilesh Yadav discusses alliance with Congress

During his Rae Bareli visit, Yadav said the Samajwadi Party would contest the 2027 election as part of an alliance and indicated that seat-sharing would be decided on the basis of winnability.

He said the party would give a seat to whichever alliance partner is considered capable of winning it. The remarks come against the backdrop of the SP and Congress having contested the 2024 Lok Sabha election together in Uttar Pradesh.

Rae Bareli has particular political significance for the Congress as Rahul Gandhi is its sitting Lok Sabha MP. Yadav’s decision to begin the campaign from the constituency therefore placed the SP’s alliance with the Congress in focus.

PDA Rath becomes centrepiece of campaign

The PDA Rath was rolled out as part of the SP’s mobilisation ahead of the 2027 Assembly election. The vehicle prominently carries the party’s PDA messaging, with PDA standing for Pichhde, Dalit and Alpsankhyak.

The campaign is aimed at taking the SP’s social-justice messaging to voters across Uttar Pradesh as the party prepares for the Assembly election.

During the programme, Yadav also attacked the BJP and raised issues including the Election Commission and what he described as the alleged misuse of election machinery. These are political allegations made by the SP chief and should be understood as such.

BJP reacts to Akhilesh Yadav’s campaign

The launch of the PDA Rath comes as political activity intensifies in Uttar Pradesh ahead of the 2027 Assembly election.

The BJP has responded to Yadav’s campaign and his political messaging, while the SP has continued to focus its outreach on the PDA social coalition and its alliance strategy with the Congress.

The 2027 contest is still ahead, with parties using the period before the election to strengthen their organisational networks, public outreach and alliance arrangements.