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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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6 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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AAP slams BJP after President asks Home Ministry to act on its demand to dismiss Delhi govt

“If BJP feels that it wants to lose quickly, then it should announce the date of Delhi assembly elections tomorrow itself. We are ready for the elections,” Singh said.

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4 hours ago

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September 10, 2024

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The Aam Aadmi Party (AAP) on Tuesday slammed BJP after President Droupadi Murmu took cognisance of the memorandum submitted by the saffron party and forwarded it to the Ministry of Home Affairs (MHA), seeking action on BJP’s demands to dismiss Chief Minister Arvind Kejriwal-led government in Delhi.

A delegation of BJP MLAs met President Murmu on August 30 and submitted a memorandum, urging her urgent intervention in the Constitutional crisis plaguing Delhi due to Kejriwal’s imprisonment.

Retorting sharply at BJP, Delhi Minister Atishi accused the saffron party of conspiring to topple the Kejriwal government through the back door by imposition of the President’s rule in Delhi.

The accusation comes a day after the Opposition BJP stated in the memorandum that Delhi was facing a constitutional crisis and demanded proper attention on the matter from the MHA.

AAP’s Rajya Sabha MP Sanjay Singh also lashed out at the BJP, declaring that his party is prepared for the elections.

“If BJP feels that it wants to lose quickly, then it should announce the date of Delhi Assembly elections tomorrow itself. We are ready for the elections,” Singh said.

Talking to PTI, Atishi said that if the Kejriwal government is toppled, the Delhiites will give a befitting reply by giving zero seats to the BJP in the upcoming Assembly elections and the AAP will win all the 70 seats.

Leader of Opposition in the Delhi Assembly Vijender Gupta on Monday alleged that paralysis of governance in Delhi was caused by Chief Minister Kejriwal being in jail for more than four months on serious corruption charges in the excise policy case.

Atishi said the BJP’s only job is to topple the elected governments in the country through its “Operation Lotus” as happened in Maharashtra, Karnataka and Manipur.

“They also tried Operation Lotus in Delhi to topple the government by poaching the AAP MLAs, but they failed. Now, they are conspiring to impose the President’s Rule through the back door to topple the popular government of Arvind Kejriwal in Delhi,” she alleged.

The elections to the 70 seats of the Delhi Assembly are due early next year.

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Farooq Abdullah says BJP trying to intimidate Hindu voters in Jammu and Kashmir

On BJP manifesto for Jammu and Kashmir polls, he said it was just a “jumla” (rhetoric).

Published

2 days ago

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September 8, 2024

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National Conference president Farooq Abdullah on Sunday said the BJP top brass was focussing its election campaign on Jammu as they want to intimidate the Hindu voters of Jammu and Kashmir by creating false fears.

Abdullah also accused the BJP of misleading the people by claiming that terrorism would rise again if the National Conference and Congress alliance came to power in Jammu and Kashmir.

“BJP wants to threaten the Hindu community. They think the Hindus will vote for them but today the Hindus have changed. First, they sought votes in the name of Ram and now they want to intimidate them,”  Abdullah charged.

National Conference leaders Farooq Abdullah and Omar Abdullah paid tributes to the founding leader of the All Jammu and Kashmir Muslim Conference and father of Farooq Abdullah, Sheikh Abdullah on his 42nd death anniversary, in Srinagar.

Speaking to reporters after paying tribute, he said BJP repealed Article 370 of the Constitution but did terrorism end. Terrorism is rising again and it is all their responsibility, he added.

Abdullah was responding to a question on why Prime Minister Narendra Modi and Home Minister Amit Shah were campaigning in Jammu while ignoring Kashmir.

Reacting to Shah’s criticism of the NC-Congress coalition during his visit to Jammu, the former Chief Minister said he was only trying to malign his party.

“National Conference will win. I only want to say to Amit Shah that we are against the India they want to create. The country belongs to everyone. Those who are raising their voice against Muslims should know that Muslims have also sacrificed their lives for the freedom of this country,” he said.

 “But, God willing they won’t succeed. Our efforts will pave the way to serve for the betterment of our people. The Home Minister can keep saying as much about us as he wants but I want to tell him that we are against that Bharat, which they want to create. Bharat belongs to all — Hindus, Muslims, Sikhs, Christians, Buddhists.

“We are not intruders. We and not snatching away mangalsutra. Muslims have an equal contribution towards the freedom of India,” he added.

On restoration of statehood, Abdullah said the NC-Congress alliance would get it back. On BJP manifesto for Jammu and Kashmir polls, he said it was just a “jumla” (rhetoric).

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Rahul Gandhi slams PM Modi over Shivaji statue collapse, says it was insult to Maratha icon

In a series of speculations, Gandhi asked did PM Modi apologise for giving contracts to RSS people without merit, for the corruption in the construction of the statue, or for insulting a revered great man like Chhatrapati Shivaji Maharaj, Gandhi asked.

Published

5 days ago

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September 5, 2024

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Leader of Opposition in Lok Sabha and Congress leader Rahul Gandhi on Thursday slammed Prime Minister Narendra Modi over the collapse of Chhatrapati Shivaji Maharaj’s statue in Maharashtra saying it was an insult to the Maratha icon.

Assuring that a life-size statue of late Congress leader Patangrao Kadam in Maharashtra’s Sangli district installed by his party will be here even after 50-70 years, while Shivaji Maharaj’s statue, Gandhi said, fell only a few days later after being inaugurated by PM Modi.

Addressing an event here, he said Prime Minister should apologise not just to Shivaji Maharaj but also to every person of Maharashtra.

The Raebareli MP said Congress’ ideology is in the DNA of Maharashtra. Earlier, there used to be politics, but today there is an ideological fight in India, he added. “We want social progress but BJP wants that only a select few get all benefits,” he said.

“I am feeling happy to be here to remember Kadam ji. He dedicated his entire life to serving the Congress party, Maharashtra, and the country. He did a lot of developmental work, educational work and stood with the Congress party throughout his life,” Gandhi said.

The former Congress chief said Maharashtra is a progressive state and different people carried out progressive work here and inspired the public here.

Mentioning the party chief Mallikarjun Kharge, also present at the event, Gandhi said: “As we landed, I told Kharge ji that I have noticed one thing. I said you become happy when I go to Karnataka with you, but I have also noticed that you are equally happy when you come to Maharashtra. He replied, the Congress party’s ideology is rooted deep into Maharashtra, that’s why I am happy when I come here.”

In a post on X, Gandhi took a jibe at PM Modi and said Maharashtra and the whole country want to know why the Prime Minister apologised.

In a series of speculations, Gandhi asked did PM Modi apologise for giving contracts to RSS people without merit, for the corruption in the construction of the statue, or for insulting a revered great man like Chhatrapati Shivaji Maharaj, Gandhi asked.

“Whatever the reason, the Prime Minister and BJP are criminals of entire Maharashtra along with Shivaji Maharaj – they should apologize to every resident of the state for their behavior and corruption”, the Congress leader said.

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