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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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Punjab Congress faction games hold up who will lead party as poll approaches

The Congress leadership is expected to finalize the new Punjab Congress chief soon as factions oppose Amarinder Singh Raja Warring continuance as chief.

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mallikarjun-kharge

The Congress leadership is likely to decide the name of a new Punjab Pradesh Congress Comittee (PPCC) president in light of the growing factional differences emerging within the party state unit.

The decision by party president Mallikarjun Kharge on choosing the head of the state unit is likely to be finalized after he takes note of other senior leaders’ opinions on the matter, as differences over the continuation of Amarinder Singh Raja Warring as PPCC president has led to former Chief Minister Charanjit Singh Channi pitching his hat in the ring.

The leadership crisis has reflected the diverging interests of opposing factions in the Punjab Congress. Channi has the backing of several party leaders including Bharat Bhushan Ashu, Gurpreet Singh Kangar, Darshan Singh Brar, and Nazar Singh Manshahia, among other supporters of Channi, while another faction is supporting incumbent chief Warring.

The Congress needs to stem the crisis soon since the state is headed for elections next year as the term of the Bhagwant Mann-led Aam Aadmi Party government winds down. Many in the party have said that having a widely accepted state leader can strengthen the organizational structure.

The delay in decision-making has caused speculation with some senior leaders meeting BJP heavyweights in Delhi. Though these leaders have dismissed any rumours of switching sides, the strain among the factions is telling on party unity. But given the way several Rajya Sabha MPs of the Aam Aadmi Party switched to the BJP, nothing can be ruled out as election fever picks up.

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Congress MP Manish Tewari says terror must end before India-Pakistan dialogue resumes

Congress MP Manish Tewari has questioned calls to restart India-Pakistan dialogue, arguing that meaningful talks cannot resume until Pakistan takes verifiable action against terrorism.

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Congress MP says decades of peace initiatives have repeatedly been followed by terror attacks and calls for verifiable action against terrorism before any engagement

Congress MP Manish Tewari has questioned renewed calls to resume dialogue between India and Pakistan, saying any discussion with Islamabad must first address the issue of cross-border terrorism. Responding to an appeal by 117 eminent personalities from both countries seeking the restoration of diplomatic engagement, Tewari asked whether such talks could be meaningful without concrete action against terror infrastructure.

Speaking on Friday, the Congress leader said successive Indian governments had consistently attempted to improve relations with Pakistan, but those efforts were repeatedly undermined by terrorist attacks.

According to Tewari, governments led by P.V. Narasimha Rao, H.D. Deve Gowda, I.K. Gujral, Atal Bihari Vajpayee, Manmohan Singh and Prime Minister Narendra Modi all pursued dialogue with Pakistan through formal negotiations or backchannel diplomacy. However, he claimed that each attempt was followed by acts of terrorism.

Calls for proof of dismantling terror infrastructure

Tewari said the key issue was whether Pakistan had provided any verifiable assurance that it had dismantled its terror infrastructure.

Referring to former Pakistan President Pervez Musharraf, he said a public commitment had been made after the Parliament attack to act against terrorism, but the assurance was later withdrawn. He added that similar commitments made during the tenures of former Prime Ministers Manmohan Singh and Narendra Modi also failed to produce lasting results.

Questioning the appeal for renewed engagement, Tewari said those advocating talks should clarify what specific issues they intended to discuss while the threat of terrorism remained unresolved.

References Pahalgam terror attack and Indus Waters Treaty

The Congress MP also referred to the Pahalgam terror attack in April 2025, saying it further reinforced India’s concerns regarding terrorism.

He noted that India’s position became even more firm following the attack, pointing to the suspension of the Indus Waters Treaty as part of the government’s response.

Commenting on the timing of the letter seeking renewed dialogue, Tewari said India had consistently maintained that terrorism and bilateral talks could not proceed simultaneously. He also reiterated the government’s position that it would not differentiate between terrorists and those responsible for directing such attacks.

Peace remains desirable, but security comes first

While acknowledging that millions of people across South Asia aspire for lasting peace, Tewari argued that meaningful dialogue was not possible as long as terrorism remained a continuing threat.

He said India must first receive credible assurances from Pakistan, beginning with an end to the export of terrorism, before considering any resumption of diplomatic engagement.

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TVK alleges Rs 35 crore MLA bribery bid as Tamil Nadu political row escalates

Allegations of a Rs 35 crore bribery offer to a TVK MLA and an FIR against Senthil Balaji’s brother have intensified political tensions in Tamil Nadu, with the TVK, DMK and AIADMK trading accusations.

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The alleged attempt to destabilise the Vijay-led TVK government has triggered a major political confrontation in Tamil Nadu, with the ruling alliance and the opposition accusing each other of engaging in horse-trading and attempts to influence legislators.

The controversy intensified after Chennai Police arrested three people on Wednesday following a complaint by a TVK MLA, who alleged that he was offered ₹35 crore by representatives of a consultancy firm in exchange for supporting a move against the Assembly Speaker. According to the allegations, one of those arrested is reportedly associated with DMK MLA Senthil Balaji and his brother, Ashok.

An FIR has also been registered against Ashok, the brother of Senthil Balaji, over allegations that he attempted to bribe TVK MLA N. Elaiyaraja.

TVK accuses DMK of targeting its MLAs

TVK alleged that the DMK has been attempting to lure its legislators for several weeks in an effort to destabilise the government.

Tamil Nadu minister and senior TVK leader CTR Nirmal Kumar claimed that several TVK MLAs, along with legislators from alliance partners, had been approached over the past 40 days. He alleged that the party had now been “caught red-handed” after the police action and accused the DMK of trying to purchase the support of a TVK MLA for ₹35 crore.

Nirmal Kumar also alleged that a close associate of Senthil Balaji had threatened a TVK legislator and further claimed that former chief minister MK Stalin and Leader of Opposition Udhayanidhi were attempting to create a political crisis. He rejected allegations that the TVK itself was involved in horse-trading, asserting that the ruling alliance remained secure with the support of its partners.

According to the allegations cited by agencies, the purported plan involved securing the simultaneous resignation of 15 TVK MLAs to bring down the Vijay-led government.

Opposition rejects allegations

The DMK dismissed the accusations, alleging that the Vijay-led government was trying to divert attention from its own shortcomings.

DMK leader TKS Elangovan said the government had failed to fulfil its promises and claimed that the TVK alliance itself was engaged in horse-trading. He questioned the allegation that the DMK would seek to engineer political instability under the present circumstances.

The AIADMK also criticised the ruling party, accusing it of attracting legislators from rival parties while questioning its commitment to public welfare. AIADMK chief Edappadi K. Palaniswami said that political manoeuvring and shifting alliances had overshadowed governance.

Alliance partners support TVK government

The TVK’s alliance partners backed the government during the controversy.

Congress MP Praveen Chakravarty questioned why the DMK was allegedly seeking to bring down the government instead of remaining in the opposition, asking why it was in such a hurry to return to power.

VCK leader SS Balaji also reiterated his party’s support for the TVK government for its full five-year term. While stating that he was not aware of the specific allegations regarding attempts to poach legislators, he said that encouraging MLAs to resign was not a healthy democratic practice and reaffirmed the alliance’s commitment to the government.

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