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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

Cried over Gaza, not a word on Bangladesh: Yogi Adityanath attacks opposition in UP Assembly

Yogi Adityanath criticised the opposition in the UP Assembly, accusing them of selective outrage over Gaza while remaining silent on violence against Hindus in Bangladesh.

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Yogi Adityanath

Uttar Pradesh Chief Minister Yogi Adityanath on Wednesday launched a sharp attack on the Opposition during proceedings in the State Assembly, accusing rival parties of indulging in selective outrage and appeasement politics while remaining silent on incidents involving Hindus in neighbouring countries, particularly Bangladesh.

Referring to recent incidents across the border, the Chief Minister said the Opposition raises its voice on international issues selectively but avoids speaking out when minorities, especially Hindus, are targeted in nearby nations.

“You shed tears over developments in Gaza, but not a single word comes out when a Dalit youth is killed in Bangladesh,” Adityanath said in the Assembly, alleging that such silence exposes the Opposition’s political priorities.

The Chief Minister further claimed that incidents of violence against Hindus would not have occurred had Pakistan and Bangladesh not been created, reiterating that issues are often viewed through the prism of vote bank politics. He said candle marches are organised for global events, but killings of Hindus in Pakistan or Bangladesh do not evoke similar responses.

Adityanath also called for a condemnation resolution in the Assembly, stating that it should ideally come from the Leader of the Opposition. He said such a resolution should clearly condemn the killing and convey a warning to the Bangladesh government.

Allegations over illegal immigration

Targeting the Opposition on the issue of illegal immigration, the Chief Minister alleged that they support Bangladeshi nationals and Rohingyas. He claimed that when authorities take action to expel illegal immigrants, Opposition leaders come out in their defence, alleging that many of them have been facilitated with voter registrations and Aadhaar cards.

Meanwhile, tensions between India and Bangladesh have been visible following recent developments. India summoned the Bangladesh High Commissioner for the second time in a week amid concerns arising from incidents in the neighbouring country.

The summons came in the backdrop of protests in Bangladesh following the killing of student leader Sharif Osman Hadi and the lynching of Dipu Chandra Das in separate incidents. Dipu Das, a 27-year-old youth from Mymensingh district, was beaten to death by a mob over alleged blasphemy on December 18, and his body was later set on fire, triggering widespread outrage.

The Interim Government of Bangladesh condemned the incident. Education Adviser C R Abrar visited the bereaved family on behalf of the government, expressed condolences, and assured them of financial and welfare assistance. The Office of the Chief Adviser also reiterated its resolve to protect all citizens and ensure justice in the case.

The killing has once again raised concerns at the international level over the safety and security of minorities in Bangladesh, with minority groups demanding strict action against those responsible.

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Jammu and Kashmir High Court rejects Mehbooba Mufti’s plea on undertrial prisoners, calls it politically motivated

The Jammu and Kashmir High Court has rejected Mehbooba Mufti’s PIL on undertrial prisoners, stating it was politically motivated and lacked factual basis.

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Mehbooba mufti

The Jammu and Kashmir High Court has dismissed a Public Interest Litigation (PIL) filed by People’s Democratic Party (PDP) president Mehbooba Mufti seeking the transfer of undertrial prisoners lodged in jails outside the Union Territory back to prisons within Jammu and Kashmir. The court termed the petition politically motivated, vague and unsupported by facts, observing that it was an attempt to derive political mileage rather than address a genuine public cause.

A bench headed by Chief Justice Arun Palli and Justice Rajnesh Oswal made it clear that public interest litigation cannot be used as a tool to advance political agendas or convert courts into platforms for electoral positioning.

Court says PIL cannot become a political platform

In its observations, the High Court said the plea appeared aimed at projecting the petitioner as a champion of justice for a specific section, rather than raising substantiated legal concerns. The bench underlined that while political parties are free to engage with voters through democratic means, the judiciary must remain insulated from political campaigns.

The court reiterated that PIL jurisdiction is meant to safeguard public interest and not to be misused for electoral gain or political leverage. It cautioned against attempts to draw the judiciary into political narratives.

Undertrials have legal remedies, says court

In the 15-page order passed on Tuesday, the High Court noted that the undertrial prisoners mentioned in the petition are already facing trial before competent courts. According to the bench, adequate judicial remedies are available to such undertrials to raise grievances related to their detention or place of incarceration.

The court further observed that the failure of the concerned undertrials to approach courts on their own indicated that they may not be genuinely aggrieved by their confinement in prisons outside the Union Territory.

No locus standi, petition dismissed

Dismissing the plea, the High Court held that Mehbooba Mufti was a third-party stranger to the cause and therefore lacked the locus standi to invoke the court’s jurisdiction in this matter. The petition was described as misconceived and was rejected accordingly.

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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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