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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]

India News

Renaming MGNREGA removes core spirit of rural employment law, says Shashi Tharoor

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Shashi Tharoor

Congress MP Shashi Tharoor has strongly criticised the renaming of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), saying the move strips the rural employment programme of its core essence. His remarks came after Parliament cleared the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, also referred to as the VB-G RAM G Bill.

Speaking to media, Tharoor said the decision to remove Mahatma Gandhi’s name from the scheme “takes out the heart” of the rural employment programme that has been in place for years. He noted that the identity and philosophy associated with Mahatma Gandhi were central to the original law.

Tharoor also objected to the way the new name was framed, arguing that it unnecessarily combined multiple languages. He pointed out that the Constitution envisages the use of one language in legislation, while the Bill’s title mixes English and Hindi terms such as “Guarantee”, “Rozgar” and “Ajeevika”, along with the conjunction “and”.

‘Disrespect to both names’

The Congress leader said that inserting the word “Ram” while dropping Mahatma Gandhi’s name amounted to disrespecting both. Referring to Mahatma Gandhi’s ideas, Tharoor said that for Gandhi, the concepts of Gram Swaraj and Ram Rajya were inseparable, and removing his name from a rural employment law went against that vision.

He added that the name of Lord Ram could be used in many contexts, but questioned the rationale behind excluding Mahatma Gandhi from a programme closely linked to his philosophy of village self-rule.

Protests over passage of the Bill

The VB-G RAM G Bill was passed by the Lok Sabha on December 18 and cleared by the Rajya Sabha in the early hours of December 19 amid protests from Opposition members. Several MPs opposed the manner in which the legislation was pushed through, with scenes of sloganeering and tearing of papers in the House.

Outside Parliament, members of the Trinamool Congress staged a sit-in protest near Samvidhan Sadan against the passage of the Bill. Congress also announced nationwide protests earlier this week, accusing the government of weakening rights-based welfare schemes.

Despite opposition criticism, the government has maintained that the new law will strengthen rural employment and livelihood security. The Bill raises the guaranteed employment from 100 days to 125 days per rural household and outlines a 60:40 cost-sharing formula between the Centre and states, with a higher central share for northeastern, Himalayan states and certain Union Territories.

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Rahul Gandhi attacks G RAM G bill, says move against villages and states

Rahul Gandhi has criticised the G RAM G bill cleared by Parliament, alleging it dilutes the rights-based structure of MGNREGA and centralises control over rural employment.

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Rahul Gandhi

Leader of the Opposition Rahul Gandhi has launched a sharp attack on the Modi government after Parliament cleared the Viksit Bharat Guarantee for Employment and Livelihood Mission (Rural) Bill, commonly referred to as the ‘G RAM G’ bill. He described the proposed law as “anti-state” and “anti-village”, arguing that it weakens the core spirit of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).

The new legislation, which is positioned as an updated version of MGNREGA, was passed amid protests by opposition parties and is expected to replace the existing scheme once it receives presidential assent.

‘Bulldozed without scrutiny’, says Rahul Gandhi

Rahul Gandhi criticised the manner in which the bill was cleared, saying it was pushed through Parliament without adequate debate or examination. He pointed out that the opposition’s demand to refer the bill to a standing committee was rejected.

According to him, any law that fundamentally alters the rural employment framework and affects crores of workers should undergo detailed scrutiny, expert consultation and public hearings before approval.

Claim of dilution of rights-based guarantee

Targeting the central government, the Congress leader said the proposed law dismantles the rights-based and demand-driven nature of MGNREGA and replaces it with a rationed system controlled from Delhi. He argued that this shift undermines the autonomy of states and villages.

Rahul Gandhi alleged that the intent behind the move is to centralise power and weaken labour, particularly impacting rural communities such as Dalits, OBCs and Adivasis.

Defence of MGNREGA’s impact

Highlighting the role of MGNREGA, Gandhi said the scheme provided rural workers with bargaining power, reduced distress migration and improved wages and working conditions, while also contributing to rural infrastructure development.

He also recalled the role of MGNREGA during the Covid period, stating that it prevented crores of people from slipping into hunger and debt. According to him, any rationing of a jobs programme first affects women, landless workers and the poorest communities.

Opposition to name change and provisions

The Congress has also objected to the renaming of the scheme, accusing the government of attempting to erase the legacy associated with Mahatma Gandhi. Opposition MPs staged a dharna within the Parliament complex, questioning provisions of the bill that they claim dilute the “soul and spirit” of the original law enacted in 2005.

Under MGNREGA, the government guaranteed 100 days of work in rural areas along with an unemployment allowance if work was not provided. The ‘G RAM G’ bill proposes to raise the guaranteed workdays to 125, while retaining other provisions. However, critics have flagged concerns over employment being linked to pre-approved plans.

The bill was cleared after a midnight voice vote in the Rajya Sabha, following its passage in the Lok Sabha amid protests and walkouts. It will become law once approved by the President.

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India News

AAP dominates Punjab zila parishad polls, leads in most panchayat samiti zones

AAP has won 201 out of 317 declared zila parishad zones in Punjab so far and is leading in a majority of panchayat samiti seats, with counting still underway.

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Punjab Zila Parishad Polls

The ruling Aam Aadmi Party (AAP) has recorded a strong performance in the Punjab zila parishad elections and is leading in the majority of panchayat samiti zones, as per results declared so far on Thursday. The counting process is still underway and complete results are awaited, officials said.

Polling for the rural local bodies was held on December 14 to elect representatives across 347 zones of 22 zila parishads and 2,838 zones of 153 panchayat samitis in the state.

AAP secures clear edge in zila parishads

According to the available results, outcomes have been declared for 317 zila parishad zones so far. Of these, the AAP has won 201 zones, placing it well ahead of other parties.

The Congress emerged second with victories in 60 zones, followed by the Shiromani Akali Dal (SAD) with 39 zones. The BJP won four zones, the BSP secured three, while independents claimed 10 zones.

District-wise data shows that the AAP won 22 zones in Hoshiarpur, 19 each in Amritsar and Patiala, 17 each in Tarn Taran and Gurdaspur, and 15 zones in Sangrur. The Congress registered its best performances in Gurdaspur and Ludhiana with eight zones each, followed by Jalandhar with seven zones. The SAD performed strongly in Bathinda with 13 zones, while the BJP managed to win four zones in Pathankot.

AAP leads in panchayat samiti results

In the panchayat samiti elections, trends declared so far indicate that the AAP is leading in a majority of zones. However, officials clarified that counting is ongoing and the final picture will be clear only after all ballot papers are tallied.

Kejriwal, Mann reject opposition allegations

Reacting to the trends, AAP supremo Arvind Kejriwal said the party’s performance reflected strong rural support for the Bhagwant Mann government’s work. Addressing the media in Mohali along with Chief Minister Bhagwant Mann, Kejriwal dismissed allegations of irregularities raised by opposition parties.

He said the elections were conducted in a fair and free manner and claimed that the results so far showed a clear wave in favour of the AAP in rural Punjab. Kejriwal stated that nearly 70 per cent of the zila parishad and panchayat samiti seats had gone in favour of the party.

Congress, SAD question poll conduct

The Congress and the Shiromani Akali Dal, however, accused the ruling party of misusing official machinery. Punjab Congress chief Amrinder Singh Raja Warring alleged that the AAP had “stolen” the rural mandate and claimed that the results did not reflect genuine public support.

Opposition parties had earlier also accused the AAP government of high-handedness during the polling process, allegations that the ruling party has strongly denied.

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