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No Vote on Account; Modi govt presents an election Budget ‘interim’ only in name

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[vc_row][vc_column][vc_column_text]Interim Finance Minister Piyush Goyal broke the proprietary norm and convention today (Friday, Feb 1) to make provisions for the whole year in what he had called an ‘Interim Budget’, and introducing a host of new schemes to woo various sections of the population.

(See provisions below)

The norm is that when the country is headed for a general election to elect the next government, the incumbent government presents an interim budget, which is essentially a vote-on-account to meet the government’s expenses and keep the ongoing schemes running till the next government assumes charge after the elections. Goyal has made provisions for the whole year.

Moreover, the ‘interim budget’ presented today probably has more new programmes than the regular, full-fledged budgets Modi government came up with in the previous years. The new provisions quite openly aim to woo various sections of the population: an ‘election budget’, if ever there was one. It is likely to leave for the next government the dual problem of a huge bill and depleted funds.

Former finance minister and Congress leader P Chidambaram‏ commented: “It was not a Vote on Account. It was an Account for Votes.”

In his reaction to the budget, Leader of Congress in Lok Sabha Mallikarjun Kharge said: “You have a mandate up to May and instead they have presented a full year’s budget and are trying to befool the people of the country, keeping elections in mind.”

“These are only election sops and ‘jumlas’, as they had been speaking about ‘jumlas’ in the past,” he said about the proposals.

Be that as it may, the Budget is sure to appeal to many – and win back some of the goodwill Modi government has lost, even though it does not address the problem of joblessness and job losses.

He announced a slew of measures, mainly to benefit the middle class, address the agrarian distress, and bolster industry.

For the common citizen, the government announced full tax rebate for individuals having annual income up to Rs 5 lakh, while people with gross income up to Rs 6.5 lakh will not need to pay any tax if they make investments in provident funds and prescribed equities.

Other key measures announced by the FM were an annual benefit transfer of Rs 6,000 to each marginal farmer — with a landholding of less than 2 hectares — at a total cost of Rs 75,000 crore to the exchequer. Under the scheme, fully funded by the central government and effective from December 2018, would involve three payment transfers of Rs 2,000 each to a farmer every year.

In another important announcement, the government announced a mega pension scheme, PM Shram Yogi Mandhan, for people in the unorganised sector. Under this scheme, the government to provide a pension of Rs 3,000 a month to people in the unorganised sector after they turn 60 years old.

FM Goyal also announced that the gratuity limit for the salaried class would be increased from Rs 10 lakh to Rs 30 lakh, and he hoped that India would become a $5-trillion economy in five years’ time.

 

FOR INDIVIDUALS

Individuals with income up to Rs 5 lakh will not have to pay any income tax

Individuals with income up to Rs 6.5 lakh will not need to pay any tax if they make investments in PFs, prescribed equities

Standard Deduction raised to Rs 50,000/yr from Rs 40,000/yr

No TDS on house rent up to Rs 2.4 lakh per year

No TDS on bank, post office interest up to Rs 40,000, up from Rs 10,000

Gratuity limit increased from Rs 10 lakh to Rs 20 lakh

Income Tax returns to be processed within 24 hours and returns will be paid immediately

All assessment and verification of IT returns will be done electronically, without any intervention by officials

GoM to suggest ways to reduce GST for house buyers

Direct tax collections increased from Rs 6.38 trillion in 2013-14 to almost Rs 12 trillion

Tax base up from Rs 3.79 crore to 6.85 crore

 

 

FOR FARMERS

In a bid to woo the farming community ahead of the Lok Sabha elections, interim Finance Minister Piyush Goyal in his Budget speech on Friday announced a Rs 6,000 per annum direct cash transfer for farmers owning land less than two hectares.

Called Pradhan Mantri Kisan Samman Nidhi, the much-anticipated move will benefit about 12 crore small and marginal farmers and will come into effect retrospectively from December 1, 2018, and the first instalment will be disbursed before the elections.

“The amount will be transferred directly to bank accounts of farmers in three equal installments. The programme will be funded 100 per cent by the Central government. Twelve crore farmer families will benefit. The first installment will be issued soon after preparing a list,” Goyal said.

The scheme will cost the government Rs 75,000 crore per year. Goyal said Rs 20,000 crore has been earmarked for this financial year. Besides the PMKSN scheme, Rs 60,000 crore has also been set aside for rural employment scheme MGNREGA.

There are 12.56 crore marginal and small farmers having less than 2 hectares (5 acre) holdings. If Rs 6,000 is paid to each farmer, the total outlay will be Rs 75,360 crore.

There were speculations that the government may announce a flat cash transfer to all identified beneficiaries similar to Odisha’s Kalia scheme or one based on a per-acre basis like Telangana’s Rythu Bandhu scheme.

Pradhan Mantri Kisan Samman Nidhi is a modification of the Rythu Bandhu scheme of the Telangana government, which provides assistance on a per-acre basis (Rs 8,000 per acre per year) without any holding size limit.

The government also announced a financial package for farmers, the Pradhan Mantri Kisan Samman Nidhi scheme, under which each farmer will receive an amount Rs 6000 directly in their bank accounts every year. A sum of Rs 75,000 crore has been allocated for the scheme

 

Proposals for farmers in a nutshell

Rs 6,000 to be transferred into accounts of small farmers who have less than 2 hectares land

Farmers to be provided Rs 6,000 per year in three installments, to be fully funded by the central government

This will benefit 12 crore farmers, at an estimated cost of Rs 75,000 crore

MSP hike by 1.5 times the production cost for all 22 crops

2% interest subvention to farmers who pursue animal husbandry, fisheries jobs through Kisaan credit cards

Farmers to get 5% subvention on timely loan repayment[/vc_column_text][/vc_column][/vc_row]

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BJP says it stands for credibility of promises under PM Modi, Congress for crisis

Trivedi mockingly questioned whether Kharge was truthful in his statements made the previous day, implying that his critiques of the BJP were a reaction driven by pressure to reconcile his earlier remarks.

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The BJP said on Saturday that it stood for the credibility of promises made under Prime Minister Narendra Modi’s leadership, while labeling the Congress party as one suffering from a crisis of credibility, intensifying their ongoing rhetorical conflict over unfulfilled electoral pledges.

BJP spokesperson Sudhanshu Trivedi said that the ruling party has expanded its welfare initiatives, including health insurance, free food grains, and cash transfers to farmers, emphasising a strategy focused on wealth creation followed by equitable distribution as the Indian economy has grown over the last decade.

“We believe in the creation of wealth and its distribution. The Congress fosters corruption and depletes wealth,” he stated, referencing numerous unfulfilled promises made by Congress-led governments across various states.

Following Mallikarjun Kharge’s remark labeling “Modi ki guarantee” as a cruel joke after Modi seized Kharge’s guidance on budgetary constraints in state poll announcements, the BJP launched new accusations.

Trivedi mockingly questioned whether Kharge was truthful in his statements made the previous day, implying that his critiques of the BJP were a reaction driven by pressure to reconcile his earlier remarks.

Trivedi highlighted several accomplishments of the Modi government, including the construction of the Ram temple, the abrogation of Article 370, the building of over 14 crore homes for the impoverished, the establishment of more than 51 crore Jan Dhan accounts, and a firm stance against terrorism from Pakistan, to demonstrate the government’s fulfillment of its commitments.

He noted that Kharge, having witnessed notable leaders like PV Narasimha Rao and Pranab Mukherjee manage economic challenges effectively, is now observing the Congress party struggling under the influence of urban Naxals due to Leader of Opposition in the Lok Sabha Rahul Gandhi.

Addressing Kharge’s criticisms on various issues, Trivedi pointed to data from the Employees’ Provident Fund Organisation (EPFO) indicating a rise in account holders from 11 crore to 25 crore over the past decade.

He also referenced significant infrastructure projects, such as the construction of homes for the poor, 74 new airports, and an impressive pace of 37 kilometers of road built per day, claiming that these initiatives have created substantial employment opportunities.

“India is now ranked third in auto manufacturing and second in mobile phone manufacturing; if anyone is unable to recognize the country’s progress, there is a profound deficiency in their perspective,” asserted the BJP spokesperson.

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Maharashtra elections: Congress says Mahayuti understands its exit is certain

Congress leader Sachin Pilot, also an observer of the Congress party for the Maharashtra elections, said that the ruling Mahayuti alliance is aware that its exit is imminent.      

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The Congress on Wednesday asserted the ruling Mahayuti government in Maharashtra has understood that its exit is certain as the Maha Vikas Aghadi alliance is strong and that all its candidates are in a strong position for the upcoming Assembly elections in the state.

Congress leader Sachin Pilot, also an observer of the Congress party for the Maharashtra elections, said that the ruling Mahayuti alliance is aware that its exit is imminent.      

The Congress leader stated that the party is fully prepared and that its ally parties in Maharashtra are strong. He mentioned that the seat-sharing negotiations occurred in a positive atmosphere and that the ruling party has recognized that their exit is inevitable.

“All the candidates of the Maha Vikas Aghadi (MVA) are in a strong position. The people here have decided to support Congress and its allies in the upcoming Assembly elections,” he said.

He also noted that the alliance’s performance in the recent Lok Sabha elections was impressive. “Wherever Congress contested, our candidates won 80 percent of the seats. We expect this trend to continue,” he added.

Pilot acknowledged that there have been some differences among party members regarding specific seats but assured that those issues would be resolved in the next 2-3 days, ensuring there would be only one candidate from the MVA for each seat.

Earlier in the day, Ramesh Chennithala, Congress in charge of Maharashtra, slammed the BJP, claiming that the party is undermining its alliances in the state.

“The BJP is dismantling its alliances. They are forcefully converting alliance partner candidates into their own party candidates. The people will respond to this,” he stated while speaking to reporters.

Earlier on October 26, Chennithala alleged that crores of rupees have been reportedly offered to two of its MLAs to join Maharashtra Deputy Chief Minister Ajit Pawar-led NCP faction, ahead of state Assembly elections.

Chennithala made those allegations while speaking to reporters in the national capital. He also questioned the Maharashtra Chief Minister Eknath Shinde.

Voting for all 288 constituencies for the Maharashtra Assembly elections are set for November 20 and counting on November 23. In the 2019 Assembly elections, the BJP won 105 seats, the Shiv Sena 56, and the Congress 44. In 2014, the BJP secured 122 seats, the Shiv Sena 63, and the Congress 42.

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Rahul Gandhi not upset, Opposition spreading fake news: NCP (SP) leader Anil Deshmukh

“Opposition parties are spreading false information. It is not true that Rahul Gandhi is upset with leaders in the State,” he said.

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Asserting that Leader of Opposition in the Lok Sabha and Congress leader Rahul Gandhi was not upset with the Maharashtra unit, NCP (SP) leader Anil Deshmukh on Saturday accused the Mahayuti of spreading fake news over the issue of seat-sharing in the state.

Deshmukh mentioned that meetings between leaders of Congress in Maharashtra, including Balasaheb Thorat, Nana Patole, and Vijay Wadettiwar, and representatives of NCP (SP) and Shiv Sena (UBT), went well.

“Rahul Gandhi is not upset. Leaders like Balasaheb Thorat, Nana Patole and Vijay Wadettiwar all had meetings with leaders of NCP-SCP and Shiv Sena (UBT). We had taken the decision regarding seat sharing based on merit,” the NCP(SP) leader said.

He further clarified that the decision on seat sharing was made based on merit, countering the false information being spread by Opposition parties. Deshmukh also dispelled the notion that Rahul Gandhi was upset with the state leaders.

“Opposition parties are spreading false information. It is not true that Rahul Gandhi is upset with leaders in the State,” he said.

Furthermore, in preparation for the upcoming Assembly polls in Maharashtra, Congress released its second list of 23 candidates on Saturday.

The Maha Vikas Aghadi (MVA) has concluded talks on sharing seats in 255 constituencies, with each party planning to contest 85 Assembly constituencies, as informed by Maharashtra Congress President Nana Patole.

On the same day, the BJP released a list of 40 star campaigners, including prominent party leaders such as Prime Minister Narendra Modi, party chief Jagat Prakash Nadda and Union Home Minister Amit Shah.

The other leaders from the saffron party — Union Minister Nitin Gadkari, Defence Minister Rajnath Singh, Uttar Pradesh Chief Minister Yogi Adityanath, Assam Chief Minister Hemant Biswa Sarma, Madhya Pradesh Chief Minister Shivraj Singh Chouhan, Union Minister Bhupendra Yadav, Smriti Irani, Piyush Goyal, Jyotiraditya Scindia, Pramod Sawant were in the list.

The list also includes names of prominent leaders from the State — Maharashtra deputy CM Devendra Fadnavis, Vinod Tawde, Narayan Rane, Pankaja Munde, Chandrakant (Dada) Patil, Girish Mahajan, Radhakrishna Vikhe Patil, Ashish Shelar, Udayan Raje Bhonsle, Raosaheb Danve Patil, Ashok Chavan, Sudhir Mugantiwar, Navneet Rana, among others.

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