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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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Veeramani POCSO case: Vijay questions Stalin over earlier probe

Tamil Nadu Chief Minister Vijay has questioned MK Stalin over the handling of the Veeramani POCSO case, while Stalin has rejected allegations that the previous DMK government protected anyone.

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Actor Vijay

Tamil Nadu Chief Minister and Tamilaga Vettri Kazhagam (TVK) president C Joseph Vijay has questioned DMK president MK Stalin over the handling of the POCSO case involving Gem Granites founder R Veeramani. The political exchange follows renewed investigation into allegations involving minor girls.

Vijay’s remarks came as the ruling TVK stepped up its questions about how the case was handled during the previous DMK government. The party’s IT wing has alleged that the earlier investigation was weakened and questioned why a final report was filed.

The allegations have been rejected by the DMK. Stalin has said that no order was issued by the DMK government to protect anyone in the case and has called the allegations false and defamatory.

What did Vijay say about the Veeramani case?

Vijay questioned Stalin over the handling of the case and demanded an explanation from the former chief minister.

The TVK has specifically questioned why action was not taken against Veeramani during the previous administration and why the earlier investigation resulted in a closure report.

The party has also raised questions about the role of officials involved in the earlier investigation. These are political allegations made by the TVK and have not been established as facts.

What is the Veeramani POCSO case?

The case concerns allegations of sexual abuse of minors involving R Veeramani, the founder of Gem Granites.

The case came under renewed scrutiny after a special POCSO court rejected an earlier closure report and ordered further investigation. The expanded probe has subsequently identified additional alleged survivors who were minors at the time of the alleged offences, according to current reporting.

The investigation is also examining the circumstances surrounding the earlier probe and whether there were any lapses in how the case was handled.

What has MK Stalin said?

Stalin has rejected allegations that the previous DMK government protected Veeramani.

He has said that no order was issued by the DMK government to shield anyone in the case. Stalin has also said that everyone responsible for the alleged offences, including anyone who aided or attempted to protect the accused, should face the law.

The DMK president has further said that the focus should remain on securing justice for the affected girls rather than making political allegations.

Why has the case become a political issue?

The Veeramani case has become the subject of a political dispute between the ruling TVK and the DMK over the handling of the earlier investigation.

The TVK is questioning the previous government’s handling of the case, while the DMK has denied that it intervened to protect the accused.

At this stage, claims about political interference or deliberate weakening of the earlier investigation should be treated as allegations unless established by the ongoing investigation or judicial proceedings.

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Congress protests against Gyanesh Kumar, demands Election chief’s resignation

Congress workers took to the streets against Chief Election Commissioner Gyanesh Kumar, with protests and demonstrations held over the party’s allegations concerning the Election Commission.

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Congress stepped up its campaign against Chief Election Commissioner Gyanesh Kumar, with party workers taking to the streets and demanding his resignation amid the ongoing row over the Election Commission.

The protests followed repeated criticism by Congress leaders of the poll panel and its functioning. The party has alleged irregularities in the electoral process and has sought accountability from the Election Commission.

Congress leaders have also targeted Gyanesh Kumar personally, with Rahul Gandhi among those calling for the Chief Election Commissioner to step down.

Congress takes protest to streets

Congress workers staged demonstrations in different places as part of the party’s campaign against the Election Commission.

The protests featured sharp symbolism, including masks and handcuffs, as Congress sought to highlight its allegations against the poll panel and demand action against Gyanesh Kumar.

The demonstrations are part of a wider confrontation between the Congress and the Election Commission over issues related to electoral rolls and the conduct of elections.

Congress demands Gyanesh Kumar’s resignation

The Congress has repeatedly demanded the resignation of Gyanesh Kumar, accusing the Election Commission of failing to adequately address the concerns raised by the opposition party.

Rahul Gandhi has also stepped up his criticism of the poll panel. In a statement on Thursday, he demanded that Gyanesh Kumar resign and alleged that the Election Commission had acknowledged the issue of “vote theft”. These are allegations made by the Congress and should not be treated as an established finding unless confirmed by the relevant authority.

The dispute comes amid a broader political debate over electoral rolls, voter verification and the functioning of the Election Commission.

Election Commission under opposition scrutiny

The Congress has intensified its campaign against the poll body in recent weeks, with party leaders repeatedly questioning its decisions and procedures.

The Election Commission, meanwhile, has maintained that India’s electoral process is conducted according to the Constitution, electoral laws and prescribed procedures. Chief Election Commissioner Gyanesh Kumar has previously defended the integrity of the electoral system and rejected claims that electronic voting machines can be remotely hacked.

The latest protests add to the continuing political confrontation over the Election Commission and the opposition’s demands concerning the poll panel’s functioning.

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 Akhilesh Yadav launches SP’s 2027 UP poll campaign from Rahul Gandhi’s seat

Akhilesh Yadav launched the Samajwadi Party’s 2027 Uttar Pradesh Assembly election campaign from Rae Bareli, represented by Rahul Gandhi in the Lok Sabha.

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Akhilesh Yadav

Samajwadi Party chief Akhilesh Yadav has formally begun the party’s campaign for the 2027 Uttar Pradesh Assembly elections, launching the outreach from Rae Bareli, the Lok Sabha constituency represented by Congress leader Rahul Gandhi.

Yadav travelled through the area on the party’s newly launched PDA Rath before addressing a public meeting. The campaign vehicle carries the Samajwadi Party’s PDA messaging, referring to its focus on backward classes, Dalits and minorities.

Akhilesh Yadav discusses alliance with Congress

During his Rae Bareli visit, Yadav said the Samajwadi Party would contest the 2027 election as part of an alliance and indicated that seat-sharing would be decided on the basis of winnability.

He said the party would give a seat to whichever alliance partner is considered capable of winning it. The remarks come against the backdrop of the SP and Congress having contested the 2024 Lok Sabha election together in Uttar Pradesh.

Rae Bareli has particular political significance for the Congress as Rahul Gandhi is its sitting Lok Sabha MP. Yadav’s decision to begin the campaign from the constituency therefore placed the SP’s alliance with the Congress in focus.

PDA Rath becomes centrepiece of campaign

The PDA Rath was rolled out as part of the SP’s mobilisation ahead of the 2027 Assembly election. The vehicle prominently carries the party’s PDA messaging, with PDA standing for Pichhde, Dalit and Alpsankhyak.

The campaign is aimed at taking the SP’s social-justice messaging to voters across Uttar Pradesh as the party prepares for the Assembly election.

During the programme, Yadav also attacked the BJP and raised issues including the Election Commission and what he described as the alleged misuse of election machinery. These are political allegations made by the SP chief and should be understood as such.

BJP reacts to Akhilesh Yadav’s campaign

The launch of the PDA Rath comes as political activity intensifies in Uttar Pradesh ahead of the 2027 Assembly election.

The BJP has responded to Yadav’s campaign and his political messaging, while the SP has continued to focus its outreach on the PDA social coalition and its alliance strategy with the Congress.

The 2027 contest is still ahead, with parties using the period before the election to strengthen their organisational networks, public outreach and alliance arrangements.

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