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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 raises seat offer to Eknath Shinde’s Shiv Sena to nearly 90 ahead of Mumbai civic polls, talks continue

The BJP has raised its seat offer to Eknath Shinde’s Shiv Sena to nearly 90 for the upcoming BMC elections, but fresh talks are needed as differences persist within the Mahayuti.

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With the Brihanmumbai Municipal Corporation (BMC) elections drawing closer, the seat-sharing tussle within the Mahayuti alliance continues, with the BJP increasing its offer to Eknath Shinde-led Shiv Sena but failing to reach the party’s expectations.

According to sources, the BJP has now proposed close to 90 seats for the Shinde faction in the upcoming Mumbai civic polls. This is a significant jump from its earlier offer of 52 seats but still falls short of what Shinde is seeking. The Shiv Sena leader has reportedly reduced his demand from an initial 125 seats to 112, yet remains dissatisfied with the latest formula.

Chief Minister Devendra Fadnavis is expected to hold another round of discussions with Shinde to break the deadlock. Sources indicate that the BJP is unlikely to stretch its offer much further, especially after its strong showing in recent statewide local body elections.

BJP firm after strong local poll performance

The BJP has emerged as the single largest party in the recent local polls, securing 117 municipal president posts. In comparison, the Shinde-led Shiv Sena won 53 posts, while Ajit Pawar’s faction of the NCP secured 37. These results have strengthened the BJP’s negotiating position ahead of the BMC elections.

However, the current seat-sharing calculations could change if Ajit Pawar decides to contest the Mumbai civic polls as part of the alliance. Senior NCP leader Sunil Tatkare confirmed that no final decision has been taken yet, noting that discussions with alliance partners are ongoing.

Nawab Malik factor complicates alliance talks

A major point of contention within the Mahayuti is the issue of senior NCP leader Nawab Malik, who is facing multiple corruption cases, including a money laundering case linked to underworld activities. While the alliance has made it clear that Malik is unacceptable as part of its Mumbai setup, Ajit Pawar is reportedly firm on backing him.

Mumbai BJP chief Ameet Satam has publicly stated that the party would not align with any group that includes Malik. Sources added that if the NCP joins the alliance in Mumbai, it may be asked to project a different leader and contest a limited number of seats.

BMC elections timeline

The countdown to the Brihanmumbai Municipal Corporation elections has already begun, with less than a month left for polling. Voting is scheduled for January 15, with counting set to take place the following day. A total of 2,869 municipal seats will be contested, including 227 seats in the BMC.

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India News

Yogi Adityanath’s do namoone remark sparks Akhilesh Yadav’s jab on BJP infighting

Yogi Adityanath’s ‘do namoone’ comment in the UP Assembly has been countered by Akhilesh Yadav, who termed it a confession of BJP’s internal power struggle.

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Yogi Adityanath

Uttar Pradesh Chief Minister Yogi Adityanath’s recent “do namoone” comment in the state Assembly has triggered a sharp political exchange, with Samajwadi Party chief Akhilesh Yadav turning the remark into an attack on the Bharatiya Janata Party’s alleged internal discord.

The comment was made during a heated Assembly discussion on allegations of codeine cough syrup smuggling in Uttar Pradesh. Opposition members had accused the state government of inaction, claiming that timely steps could have saved the lives of several children. Rejecting the allegation outright, Adityanath said that no child in the state had died due to consumption of the cough syrup.

While responding to the opposition benches, the Chief Minister made an indirect jibe, saying there were “two namoone”, one in Delhi and one in Lucknow. Without naming anyone, he added that one of them leaves the country whenever there is a national debate, and suggested that a similar pattern applied to the Samajwadi Party leadership. The remark was widely interpreted as being aimed at Leader of Opposition Rahul Gandhi and Akhilesh Yadav, a former Uttar Pradesh chief minister and current Lok Sabha MP

Akhilesh Yadav calls remark a ‘confession’

Akhilesh Yadav responded swiftly on social media, calling Adityanath’s statement a “confession” that exposed an alleged power struggle within the BJP. He said that those holding constitutional posts should maintain decorum and accused the ruling party of bringing its internal disputes into the public domain. Yadav posted his response shortly after the Chief Minister shared a video clip of the Assembly remarks online.

The Samajwadi Party has, on several occasions, claimed that there is a tussle between the Uttar Pradesh government and the BJP’s central leadership. Party leaders have cited the appointment of deputy chief ministers and certain bureaucratic decisions as evidence of attempts to curtail the Chief Minister’s authority.

Adityanath has consistently dismissed these claims, maintaining that he holds the post because of the party’s trust in him. The latest exchange has once again brought the narrative of BJP infighting into political focus, even as both sides continue to trade barbs ahead of key electoral contests

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Sonia Gandhi calls weakening of MGNREGA a collective moral failure, targets Centre in op-ed

Sonia Gandhi has accused the Centre of weakening MGNREGA, calling it a collective moral failure with serious consequences for crores of working people.

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Sonia Gandhi

Congress Parliamentary Party chairperson Sonia Gandhi has sharply criticised the Central government over what she described as the steady dismantling of rights-based legislation, with a particular focus on the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).

In a recent opinion article published in a leading English daily, Sonia Gandhi argued that MGNREGA was envisioned as more than a welfare measure. She said the rural employment scheme gave legal backing to the constitutional right to work and was rooted in Mahatma Gandhi’s idea of Sarvodaya, or welfare for all.

Calling its weakening a serious failure, she wrote that the decline of MGNREGA represents a “collective moral failure” that will have lasting financial and human consequences for crores of working people across India. She stressed that safeguarding such rights-based frameworks is crucial at a time when, according to her, multiple protections are under strain.

Concerns raised over education, environment and land laws

Sonia Gandhi also flagged concerns beyond rural employment. Referring to education policy, she claimed that the Right to Education has been undermined following the National Education Policy 2020, alleging that it has led to the closure of around one lakh primary schools across the country.

On environmental and land-related legislation, she stated that the Forest Rights Act, 2006, was weakened through the Forest (Conservation) Rules, 2022. According to her, these changes removed the role of the gram sabha in decisions related to the diversion of forest land.

She further alleged that the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act has been significantly diluted, while adding that the National Green Tribunal has seen its authority reduced over the years.

Warning on agriculture and food security laws

Touching upon agriculture reforms, Sonia Gandhi referred to the now-repealed three farm laws, claiming they were an attempt to deny farmers the right to a minimum support price. She also cautioned that the National Food Security Act, 2013, could face similar threats in the future.

Reiterating her central argument, she urged unity to protect statutory rights, stating that the erosion of such laws has implications that extend well beyond policy, affecting livelihoods and dignity on the ground.

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