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The Indian Budget 2018: The Good, the Bad and the Ugly

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It won’t be a hyperbole to call the preparation of the Indian Budget the world’s toughest tightrope balancing act. In a country of 1.3 billion Indians, a gazillion sects and a country where the dialect changes every 20 kilometers, the Indian Budget is a unique unifying factor. Sitting in a small office, a select group of individuals charts the course of the Indian economy, soon to be the world’s fifth largest. A multitude of Intelligence and Security agencies are tasked to ensure that the Budget remains a secret before it is presented and the markets wait with a bated breath to gauge the winds that will blow with the onset of the Indian Budget. These winds can help the markets move at roaring speeds or topple the very applecart of their existence.

The Narendra Modi led National Democratic Alliance presented it final full Budget on Feb. 1, 2018. With elections due in eight states and the coming of the all-India General Elections, this budget was a final attempt by Modi to deliver on his promise of “Ache Din” (Good Days). But did he? Large sections of India is now restless. Farmers are suffering from a lack of good prices and mounting agricultural loans. Youth is suffering for the want of jobs. Businesses are under stress due to a new tax regime that they are yet to understand and comprehend. The Indian Middle class, BJP’s strongest supporters and among the minuscule few who actually pay a direct tax is reeling under high taxes. This was the last grab attempt to placate these sections and retain power for another five years. But what did it deliver? Sure enough, the budget contains a slew of measures for the agriculture and rural sectors, a new health insurance scheme has been announced for the poor and a small relief in income tax for the salaried class and senior citizens.

Let’s take a closer look at the Indian budget and break out the good, the bad and the ugly.

The Good

To placate the Farmers who have been protesting across the length and the breadth of the country, this budget promises to raise the minimum price offered to farmers for their crops. Stating that the focus of the government in the coming fiscal would be agriculture and rural India, the finance minister has announced that all Kharif crops will be paid a minimum support price (MSP) that is 50 percent more than the cost of production. It has also identified a need to invest heavily in the agricultural markets across India. It has also earmarked more money for rural areas, including that for irrigation projects and for aquaculture projects. The Kisan credit card will be extended to fisheries and animal husbandry farmers while Rs 2,000 crore provided for the development of agriculture market. The central budget directs state governments to purchase extra solar power generated by farmers using solar-powered pumps who have become cheaper after this budget.  The credit to agriculture would be raised to Rs 11 lakh crore in the coming fiscal from Rs 10 lakh crore. The budget provides for a 100 percent tax deduction for farm producer firms with Rs 100 crore turnover. There is a special impetus to promote “Operation Green”. In total, there has been a record allocation of Rs. 14.34 lakh crores for the agriculture sector.

In a bid to provide universal healthcare, the Budget announces a ‘National Health Protection scheme’ to provide health cover of up to Rs 5 lakh to each of the 10 crore poor families per year. Under the Aayushman Bharat programme, a total of 1.5 lakh centers will be set up to provide health facilities closer to the homes for which an outlay of Rs 1,200 crore to be allocated. A total of Rs 600 crore have been allocated for tuberculosis patients who will be provided with a grant at the rate Rs 500 per month during the course of their treatment. There are plans to set up 24 new medical colleges and hospitals by upgrading district level ones.  The budget lists that the PM JivanBimaYojana has benefited 5.22 crore families with more in the pipeline. And here we were really thinking that Obama-care was game changing?  Apart from all these announcements, the Budget contains a slew of announcements for the senior citizens of the nation like Incentives for Senior citizens like exemptions in income of Rs 10,000 from Banks FD and post offices and Rs 50,000 per annum exemption for medical insurance under Sec 80D.

With the finance minister promising a record infrastructure spending on roads and railways, construction and engineering firms, as well as train wagon-producers, could benefit. There is a plan to expand airport handling capacity by five times to handle 1 billion trips a year. It is estimated that Rs 50 lakh crore is needed for infrastructure building and the government will allocate Rs 7,140 crore for the textiles sector in next year.  National highways exceeding 9,000-km will be completed in 2018-19 and allocation of over Rs 1.48 lakh crore has been planned for railways. Regional air connectivity scheme shall connect 56 unserved airports and 31 unserved helipads for better connected and a closer India.

For the rural economy, the budget contains a slew of announcements. 8 crore poor women will get new LPG connections. Under the Prime Minister’s SaubhagyaYojana, it is estimated that 4 crore poor people will get power connection. A total spending estimate for this scheme is Rs 16,000 crore. Under the Swach Bharat Mission, the Government plans to construct 2 crore toilets in the next fiscal year. The government has set an ambitious target to provide a house for all by 2022. A total of 1 crore houses are to be built under Pradhan MantriAwasYojana in the rural areas. The Government will expand the PM Jan DhanYojana. All 16 crore accounts will be included under micro insurance and pension schemes for better returns and social outreach.

To formalize the economy, the Employees Provident Fund Act will be amended to reduce the contribution of women to 8 percent from 12 percent for first three years, with no change in employer’s contribution. The government will contribute 12 per cent of wages of new employees in EPF for all sectors for the next 3 years. The target for loan disbursement under Mudra scheme has been set at Rs 3 lakh crore for next fiscal.

The Bad

The government has extended Corporate Tax of 25% to companies with turnover up to Rs 250 cr in the financial year 2016-17. For a party always under a perception of being a corporate front, this will not go down well in the eyes of the media and the party will have a wild time dousing the flames. Also, 100% tax deduction is allowed to co-operative societies, the majority of whom have cooked books and shady members.

The long-term capital gains will now be taxed at a rate of 10% if exceeding Rs 1 lakh. The Education cess increased to 4% from 3% to collect additional Rs 11,000 crore but in turn, has put an additional burden on the tax paying middle class. The government’s decision to impose long-term capital gains tax on equity investments may dent investor sentiment for financial services companies, life insurers and providers of mutual fund products.

The Indian Defense Budget, while increased contains no clear roadmap to make India a manufacturing powerhouse and increase our armament production. Barely spending money is not good and while the outlays are increasing continuously, it is no secret that our outlay is minuscule in comparison to our GDP. Furthermore, most of the current budget is spent on personnel and maintenance costs, leaving very little for capital acquisition.  There is a serious need to quantify the defense budget and earmark separate funds for the capital acquisition.

The Ugly

Apart from a few scraps here and there like Rs 40,000 standard deduction, Mr. Modi has completely ignored the honest Indian Direct Taxpayer. A resentment is now brewing in this segment which has honestly been paying to tax and has time and again got pinched by every budget. In a nation where barely, 1.9% of the populations pays any tax, the honest Indian Taxpayer has become a minority of sorts, exploited and with no one to raise a voice for it. Hopefully, Modi can mollify this before the General Elections or all hell will break loose.

Conclusion

To conclude, the Indian Budget is prudent, not populist. The Indian Government deserves full credit for bringing out such a balanced budget so close to the General Elections. The fiscal prudence of this government has been lauded by international agencies and the recent budget is in line with the attempt of the government’s fiscal consolidation path. The Finance minister has set the fiscal deficit for 2019/19 (April-March) at 3.3 percent of the gross domestic product, slightly higher than expectations for 3.2 percent. Altogether, the budget has focused more “investments” than one-time hangouts. However, the devil lies in the details. There is a pertinent need for faster and smoother implementation.  The infrastructure projects will generate more jobs and ultimately, more usable projects on completion. R&D will generate more output for this nation. The government is ably trying to focus on both the “Ease of Doing Business” and the “Ease of Living”. Elections are upon the present dispensation and the Government must now focus on the implementation. If the 2014 election was about Ache Din, 2019 (or 2018) will be about the poor. The buildup initiated with the Jan Dhan and theUjwala Yojana, continued with the PAHAL andSaubhagyaYojana and now the AyushmanYojana and this Budget. The ingredients are all there. It now up to the chef Modi to cook his broth. But will his broth taste like sweet victory or a bitter-sweet defeat. This only time, and the Indian Rural Voter will tell.

South Asia

The Taliban Finally Granted Permission to the Former President Karzai to leave Afghanistan

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Former President of Afghanistan Hamid Karzai. (Express photo by Nirupama Subramanian)

Based on the information, the former president of Afghanistan, Hamid Karzai, was permitted to leave the country. At a time, when online meetings between Sohail Shaheen and American representatives are going on in connection with the start of intra-Afghan talks in Doha, The former president of the country, Hamid Karzai, was allowed to exit the country for the first time after August 15, 2021, when the Taliban took over. Nevertheless, it is not yet known when he will start his overseas trip, but his only purpose is to get preparation for the start of Intra-Afghan talks in Doha and to meet with American officials and foreign Afghan politicians. Since the end of October and the beginning of November, there are reports narrating that telephone calls are being made between President Hamid Karzai, and the US special representative for Afghanistan, Thomas West.

Besides, the persons are preparing for future negotiations, the re-established relationship between the former president Karzai and the CIA took place, when a CIA undercover intelligence officer met Karzai sometimes back, when he represented himself as an International media reporter. Sources suspect that the undercover agent interviewed the president under the auspices of a well-known German based Der Spiegel Magazine.

According to the information, former President Hamid Karzai will fly to Germany, while meeting with the CIA officials at the US Ramstein Air Base in Germany. Meantime, the former President Hamid Karzai will meet with some high-ranking officials of Germany and then have separate meetings with Western politicians and intelligence officers. Furthermore, after that, President Hamid Karzai will meet with the American ambassador to lay out the strategy for the potential negotiations.

 Currently, there is a lot of confusion in the Mandigak palace in Kandahar province, where Taliban Spiritual leader and the decision making hub located and it is said that there have been serious discrepancies  regarding allowing him to go abroad. However, Sheikh Haibatullah’s position is still neutral about his exit, while negotiating with his advisors to make a final decision in the upcoming days.

Nonetheless, there are no other specific differences regarding the permission. It is only the low-ranking Taliban fighters, who demand the precise judgement of the Taliban’s leader in this concern; In addition, some Taliban leaders are also unhappy about the whole process, especially the former members of the Quita Council of Taliban.

Now the ball is in the Taliban’s ground, whether they are ready to comply with the demands of the international community, by transferring the power to a transitional government or not, and to get along with the United States and get onboard the international community support. Definitely, it causes further splintering among Taliban groups and ISKP will use it as an opportunity to recruit Taliban fighters, while paving the way for regrouping in Khorasan Province the IS so-called territory.

The ISKP long before blamed Taliban for being ‘’ Rafeda’’, while simultaneously cooperating with the US, Russia, China and Iran for their political ambitions.  To conclude, the Afghan people will not accomplish a lasting peace and sustainable economic developments, since the country will turn into a new battle filed among countries, which have stake in Afghanistan.

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The Charisma and Chaos of Imran Khan

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PTI Chairman Imran Khan gestures at the march participants as his convoy arrives in Gujranwala on November 1, 2022. — Instagram

The chances of Imran Khan winning the elections of 2018 were quite murky. Despite his unparalleled fan base and populist rhetoric appeals to the young, and labor class of Pakistan, the legitimacy of his government is marred with allegations of fraud, rigging, and exploitation.

Some argue that his candidacy was a marketing tactic used by the ‘Establishment’ in Pakistan to form a government that is rather weak and dependent so that the ‘Establishment’ can continue its control over domestic security issues including the Nuclear escalation and relations with India.

But by and large, Khan won the elections.

Maybe it was the stardom attached to the name ‘Imran Khan’ and Pakistanis not wanting to confide in the same faces ruling them for centuries.

Maybe it was the mismanagement and violence that marred election day with unfathomable delays in result declaration in metropolis cities, coupled with post-poll manipulation.

Maybe it was the judicial-military nexus, that placed all the votes in the right places by not allowing voters to use their will during elections.

Maybe it was the 7 years-old narcotics case hearing moving forward against the stalwart of Pakistan Muslim League-Nawaz, Hanif Abbasi, giving him a life sentence in a rare late-night session of court, four days ahead of the elections that effectively knocked PML-N out of the race.

But the deal was done and can’t be undone and Imran Khan became the Prime Minister of Pakistan, for better or worse.

Khan the Celebrity

Pakistani nationals were victims of the financial crisis, unemployed people, those who lost their homes, and who were in debt; these people felt like the two parties ruling Pakistan for centuries had destroyed their country’s economy.

Imran Khan, with his humongous stardom as an athlete and philanthropist, seemed like the only ‘Messiah’ that could save them from all the atrocities they were facing.

Though, a significant number of votes were cast in favor of PML-N but not in the places that would have locked the win. So Imran Khan, persuaded the angry Pakistanis, the youth, and the labor class who were fed up with being handed over in trade deals with other nations.

Khan, a socialite that he was, knew how to connect with these agitated masses. Their grievances were clear as a day and so he gave them pretty promises wrapped up in his vibrant rallies filled with catchy songs. His huge social media presence along with the ‘Naya Pakistan’ slogan further amplified his staunch.

But there lies a challenge as to why Khan became the top highlight of this era. To many who were tired of politicians filling their own pockets, and amid the corruption charges on Nawaz Sharif, Khan’s celebrity status, his colorful personality, his promise of a corruption-free Pakistan, and his unconventional ‘Don’t Panic’ attitude – all of this made Khan seem like the only option who would deliver a better life and nation and, if not that, then at least would be the eradicator of what Pakistan had become.

Khan the Totalitarian

The other side of the coin sees Imran Khan as a narcissist, self-centered, and power-hungry mogul. After achieving his eternal craving of becoming the Prime Minister, he hardly showed any respect for the institutions of the country. More often than not he refused to attend the sessions of Parliament, with his excuse being the presence of members of the opposition party whom he referred to as ‘Crooks’ and ‘Chors’ (thieves).

This resulted in laws, instead of passing through an ordinary law-making process, being passed through presidential ordinances, with very limited power. We can clearly say that these laws were passed without debate, consensus, and thorough examination, negating the very foundation of constitutional requirements.

Additionally, Khan likes to fabricate stories in his speeches, a lot. In this vein, he brings down any democratic provision that proves him wrong, including targeting political parties on concocted charges of corruption; sustained attacks on the media; undermining law authorities, even the Supreme Court is not exempted from his allegations.

Through the abrogation of rule of law, irresponsible remarks about institutions, and disdain toward democracy, Khan himself created a fragile parliamentary system, which then collapsed on him. Not only this, but he has fractured the already dwindling democracy of Pakistan into a whole new level.

Khan the Leader

Khan came onto the political scene when Pakistan was facing a volatile situation both at home and abroad, coupled with the tensions going on with the Americas, and the rampant inflation, he was still able to take some impressive measures. His work related to health, relief programs, house loans, the environment, entrepreneurship, and the COVID response is admirable.

In addition, his billion tree tsunami and the building of several small dams initiated an environment-friendly drive in the climate change-affected country. But was he able to deliver on the ‘Promises’ made to the nation? Absolutely Not.

Perhaps he should have paid more attention to the cabinet as the abrupt changes in the system dwindled the confidence of investors in Pakistan’s economic machinery. His careless handling of some important economic programs including the CPEC decelerated the capital influx that caused the GDP to drop considerably.

To top it all off, Pakistan, in 2021 dropped from 124th place to 140th place according to Corruption Perceptions Index (CPI), leaving an ugly mark on Khan’s corruption eradication promises on which he has led the foundation of his political career. Maybe he should have abided by the agenda of progression in order to gear up his performance instead of getting involved in blame and shame politics.

Khan the funambulist

The important reason why Khan has a cult following in Pakistan is his unfiltered and raw opinions about topics like the Americas, and Afghanistan which he keeps casting in his speeches. And, the audience, mostly the social media-induced young generation eats it all up like a sweet concoction, without paying heed to the implications it will bring to the foreign policy of Pakistan.

Khan’s decision to appoint Usman Buzdar, an underqualified and inexperienced newcomer to a vital position in the key city of Punjab pretty much sums up his political foresight. Perhaps, the most interesting yet debatable contrivance of his regime is his relentless attitude toward the United States, no previous Prime Minister of Pakistan was able to say ‘Absolutely No’ to the US as it had many allies in the domestic political platform of Pakistan. This stance of Khan was admired a lot in the country, with the phrase being trending in Pakistan. But the remarks came with ramifications for Pakistan on the international forum. This whole scenario further makes people question his political sanity.

Imran Khan possesses all the characteristics of a populist leader and in Populism: A Very Short Introduction, Cas Mudde says: “Populists are dividers, not uniters” they split society into “two homogenous and antagonistic groups: the pure people on the one end and the corrupt elite on the other.” True to this narration, Khan has divided the nation into two groups of ‘Evil and Good’ people, and the consequences are detrimental to the stability of the Islamic Republic of Pakistan.

Conclusion

To sum it all up, Imran Khan, despite his misgivings, his warts, his narcissism, and his unhinged political views, is still able to reach a class of people that have seen Pakistan erode for centuries and consider him the last hope for the country. But he certainly is not the best choice for democracy as his political understanding is ruined by his self-righteous approach. In this manner, he is no better than former US President Trump who incited his supporters to pass on the U.S. Capitol to forestall the peaceful transition of power after his electoral defeat. It is precise to say that Pakistan has fallen into a deep cauldron and only a Magic Wand can heal it at this point. Though Khan has not singularly created this cauldron, he most definitely is exploiting and feeding on it.

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Chattisgarh Elections 2023: Future of United Progressive Alliance and BJP

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Chattisgarh, the 9th largest state of India by area and 17th most populous state with population of 30 Million will go to votes in upcoming elections in 2023. Chattisgarh saw an electoral shift in 2018 when voters chose INC lead United Progressive Alliance over BJP which was into the power since 2003. The legislative assembly comprises of 90 constituencies and population demography favors the Hindu’s with 93.05%, Muslims are major minority with 2.02% and Christians make up 1.92% of the population of Chattisgarh. The major contenders in the elections are United Progressive Alliance, which came into power in 2018. The major parties in the Alliance are Indian National Congress (INC), Dravida Munnetra Kazghagam, Janta Dal (United), Shiv Sena and Nationalist Congress Party. This alliance faces BJP as major gladiator of the Elections.

INC lead United Progressive Alliance Government

In 2018 elections, United Progressive Alliance defeated BJP in the state to form the government. Previously BJP enjoyed three successive tenures in power. The Alliance proved to be vital in defeating the ex-ruling party and Bhupesh Baghel of INC was sworn in as new CM of Chattisgarh. The newly elected government opted for the developmental model in the state with their activities ranging from sports to health and good governance. The CM gave the vision of ‘Employment Mission’ which aimed at providing 15 lac jobs to people of Chattisgarh. The government provided the masses with the vision of ‘trust, development and security’ in order to remain popular and hence their projects based upon wellness of the general public. The CM started ‘Khelbo-Jeetbo-Gadhbo Nova Chattisgarh’ scheme in order to enhance sports infrastructure and facilities for youth of Chattisgarh. The scheme covered major as well as local games. The government also launched ‘ Makhyamantri Haat Bazar Clinics’ scheme in order to provide and ensure health services in rural and remote areas of the state. This scheme received a lot of praises from the masses during pandemic period. Government also enhanced education sector by setting up more than 600 Hindi and English medium schools. CM launched ‘Swami Atmanand English Medium Education System’ in all districts of the state. The scheme aimed at setting up of the English medium colleges for the students. The government under CM Baghel, also faced severe opposition in form BJP. The BJP criticized government of corruption, farm loans and internal rift among government officials. The CM also survived ‘No Confidence Motion’ tabled by BJP in the legislative assembly in July 2022.

BJP and Caste votes

Caste permutation and combinations have always played a role of dominating factor in the state of Chattisgarh. The state is amalgamation of upper castes, schedule castes (SC), Schedule tribes (ST) and Other Backward Castes (OBCs). The Kurmi’s and Sahu’s dominate upper castes in the state. One third of the population is composed of Scheduled tribes (ST), while Schedule castes (SC) make up 12% of the population and Other Backward Castes (OBCs) are 41% of the population. Upper castes and OBCs have traditionally tilted in the favor of BJP. SC votes have been divided among BJP, INC and Bahujan Samaj Party (BSP). In 2013 however, BJP swept through 9 out of 10 constituencies of SC reserved seats. Dalit vote bank also has an influential role in elections. There exists around 12% of Dalit vote splitting between BJP and BSP. This vote bank influences 40 constituencies of the state. BJP is also counting upon Sahu’s votes in order to gain power back in upcoming Chattisgarh elections.

Chattisgarh as home ground of Hindutva

Chattisgarh has seen a violent shift when it comes to application of agenda of Hindutva. RSS and its political affiliate BJP have targeted Chattisgarh for Hindutva onslaught. The norms of Hindu identity have gone deep down into the roots of the society. ‘Ghar Wapsi’ scheme is gaining influence in Chandigarh. In March 2022, a ceremony was held and 1250 people returned to Hindu dharma. In states like Odisha, Chattisgarh and Jharkand more than 10,000 people have returned to Hindu dharma. BJP has developed a narrative of targeting Congress for miseries of Hindu’s all around India. Vishwa Hindu Parishad (VHP) an affiliate of RSS has been provided with security umbrella of BJP and it has forced Churches in Chattisgarh to use name of ‘Acharya’ and ‘Up-Acharya’ instead of ‘Father’. VHP has also forced churches to display images and painting of Hindu goddess ‘Saraswati’ in churches. The organization has also forces churches to distribute ‘Prasad’ instead of sweets at the eve of Christmas, thereby attacking the root identities of Christianity in the state. Around the time when BJP formed the government in center in 2014, 5 villages in Bastar district of Chattisgarh were banned for non-Hindu practices. Hindu leaders in Chattisgarh are calling for killing of any individual who tries to convert Hindus into any other religion. The Equation between the minorities and Hindus started changing since 2003, when BJP was installed into power in Chattisgarh. The change has intensified now when BJP is also present in Center. 

Bet on Youth’s vote

The youth vote bank in Chattisgarh can be the turning point in the upcoming elections. The major gladiators BJP and United Progressive Alliance are eyeing the vote share of youth in the state. The initiatives started by the CM Baghel, progressively targets the youth and their development. However, BJP accuses the current INC lead state government of unemployment among the youth. The tussle between the major contenders in the state is pivoted for Youth vote. The saffron party has also targeted youth with the identity confrontation within the framework of Hindutva. However, the INC lead coalition government is centered on the agenda of developmental and governance model for the youth rather than targeting and convincing youth on identity based vote bank. The youth from minority section of the population may opt for INC and United Progressive alliance for the power in state but saffron influenced youth and upper castes are likely to put their weight in BJP’s favor.

Conclusion

Chattisgarh elections 2023 will play a major role in determining the BJPs future in center as well. Chattisgarh has been the power bank for BJP since 2003 but shift in 2018 has taken BJP by shock and surprise. However, upcoming elections can also prove to be referendum of policies applied by BJP at national level. INC will also have to investigate its depth in masses as well. The future of alliance mostly depends upon the INC performance in the state elections. The General Elections can also be strategically targeted by INC in form of alliance and coalition seat shares in order to give tough time BJP which is by far thriving among the masses at national level.

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