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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]

Latest Politics News

Yogi Adityanath hits back after Akhilesh Yadav says organising cabinet meeting at Kumbh is political

Adityanath juxtaposed the global acclaim for the Maha Kumbh with Yadav’s condemnation, portraying it as a symptom of the Samajwadi Party’s alleged long-standing opposition to significant religious symbols such as the Ram Mandir and Kashi Vishwanath Temple.

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The political atmosphere in Uttar Pradesh sizzled as Chief Minister Yogi Adityanath launched a blistering attack on Samajwadi Party leader Akhilesh Yadav, accusing him of disrespecting the Maha Kumbh and the religious sentiments of the Indian people. This sharp rebuke, delivered during a public rally in Milkipur ahead of crucial by-elections, followed Yadav’s criticism of the state government holding a cabinet meeting at the Kumbh Mela site.

Adityanath juxtaposed the global acclaim for the Maha Kumbh with Yadav’s condemnation, portraying it as a symptom of the Samajwadi Party’s alleged long-standing opposition to significant religious symbols such as the Ram Mandir and Kashi Vishwanath Temple.

He further escalated his attack, painting the Samajwadi Party as being mired in internal property disputes and insinuating connections to criminal elements, thereby attempting to discredit Yadav’s criticisms as coming from a morally compromised position.

Yadav’s initial criticism focused on the perceived impropriety of holding a cabinet meeting within the sacred space of the Kumbh Mela. He argued that the government was inappropriately using a religious event for political purposes, a charge that Adityanath vehemently rejected.

The Uttar Pradesh cabinet meeting itself was significant. All 54 ministers attended, approving numerous development schemes designed to boost Prayagraj and the surrounding region.

A key announcement involved extending the Ganga Expressway, a crucial infrastructure project designed to connect Prayagraj, Mirzapur, Bhadohi, Kashi, Chandauli, and ultimately, the Purvanchal Expressway in Ghazipur. This ambitious project, Adityanath claimed, would significantly contribute to sustainable development in the region.

Logistical adjustments were made to minimize disruption to the Kumbh Mela pilgrims. The cabinet meeting’s venue was shifted from the Mela Authority Auditorium to the Triveni Sankul in Arail to avoid inconveniencing devotees and managing the security arrangements for the VIP attendees.

The day concluded with Adityanath and his entire cabinet participating in the Kumbh Mela’s sacred rituals, taking a ceremonial dip in the Triveni Sangam. This highly publicized event, mirroring a similar participation in 2019, served as a powerful visual counterpoint to Yadav’s earlier criticism. The event simultaneously showcased the government’s commitment to religious traditions while promoting its developmental agenda.

The clash between Adityanath and Yadav underscores the deep political divisions and the strategic use of religious symbolism in Uttar Pradesh’s political landscape. The Maha Kumbh, a significant religious event, became a battleground for political point-scoring, highlighting the complex interplay between religion and politics in the state.

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Delhi Assembly elections: BJP promises free education and student aid, AAP raises concerns

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Arvind Kejriwal addressing media after writing to RSS chief Mohan Bhagwat on BJP’s alleged electoral misconduct

As Delhi gears up for the upcoming assembly elections on February 5, the Bharatiya Janata Party (BJP) released the second installment of its election manifesto, promising comprehensive solutions to citizen issues and tackling misgovernance and corruption allegations against the incumbent Aam Aadmi Party (AAP).

The manifesto, dubbed ‘sankalp patra,’ includes significant pledges such as free education from pre-school to postgraduate levels for needy students at government institutions, and a financial package comprising Rs 15,000 and travel reimbursements for young individuals taking entrance exams. Scheduled Caste students enrolled in technical and professional courses are also promised a monthly stipend of Rs 1,000.

Building on their first manifesto which targeted women voters, the BJP’s latest promises focus on the youth, with over 1.5 lakh set to benefit from a new skills training program. This release follows criticisms by AAP of the BJP’s approach, especially after the tragic incident last July where three civil service aspirants lost their lives due to flooding.

Anurag Thakur, former Union Minister, emphasized the ‘Modi ki guarantee’ assurance, stating these initiatives would be implemented swiftly if the BJP is elected. The manifesto also includes welfare measures for domestic workers and insurance schemes for auto-rickshaw and taxi drivers, who have traditionally been a strong support base for AAP.

In response, AAP leader Arvind Kejriwal critiqued the BJP’s plans, particularly highlighting a clause that, according to him, would limit free education to only “eligible” children, deviating from AAP’s policy of universal free education. Kejriwal also recalled BJP’s earlier statement on discontinuing free healthcare, framing these promises as a threat to the financial stability of Delhi’s households.

The AAP’s counter-campaign warns voters that electing BJP could lead to increased living costs and bureaucratic hurdles in accessing education and healthcare, urging the electorate to consider these factors carefully. With the election results due on February 8, both parties continue to vie for public favor through promises aimed at key demographics.

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Uttarakhand State cabinet approves uniform civil code manual, dates for rollout soon

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Pushkar Singh Dhami

In a significant step toward legal reform, the Uttarakhand Cabinet, led by Chief Minister Pushkar Singh Dhami, has approved the manual for the implementation of the Uniform Civil Code (UCC). The approval came during a Cabinet meeting held at the state secretariat on Monday. The dates for the rollout of the UCC will be announced soon.

This decision follows partial amendments made to the rules previously drafted for the UCC’s implementation. The amendments were thoroughly examined and finalised with input from the Law Department, with the Cabinet’s discussion focusing on the smooth execution of the law.

Post-meeting, Chief Minister Dhami expressed his satisfaction with the progress, underlining the government’s commitment to fulfilling a key electoral promise. “We had assured the people of Uttarakhand during the 2022 elections that the UCC would be implemented promptly once our government came to power. With the draft committee’s work complete, we are now closer to fulfilling that promise,” Dhami stated.

Uttarakhand’s implementation of the UCC will make it the first state in India to adopt a comprehensive civil law framework for all religious communities. The UCC aims to standardize laws in areas such as marriage, divorce, inheritance, adoption, and maintenance. While India already has a Uniform Criminal Code, a unified civil law has not existed until now.

The UCC will explicitly exclude tribal communities and prohibit practices such as ‘halala’, ‘iddat’, and ‘talaq’, which are part of Muslim Personal Law. The law itself consists of 392 sections and is divided into seven schedules. The comprehensive 750-page draft, which spans four volumes, was prepared by a five-member expert committee formed in June 2022 to examine the feasibility of introducing the UCC in Uttarakhand.

Led by Retired Justice Ranjana Prakash Desai, the committee submitted the final draft to the state government on February 2, 2024. The draft received approval from the state Cabinet on February 4, followed by ratification by the state Assembly during a special session. Governor Lt. Gen Gurmit Singh (Retd) gave the green light on February 28, marking the UCC’s passage into law, a move hailed as a historic milestone in Indian legal history.

While the implementation dates are yet to be finalized, the Cabinet’s approval signals that Uttarakhand is poised to set a significant legal precedent in India.

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