'Govt ready to pay political price for tough decisions'

Agencies
December 14, 2018

Mumbai, Dec 14: Union Minister Nitin Gadkari on Wednesday said his government is ready to "pay a political price" for stringent decisions like demonetisation and the GST, even as he admitted there is an agricultural crisis and rural distress in the country.

He also hoped the results of the 2019 Lok Sabha elections won't be the same as the just-concluded assembly polls, in which the BJP lost three states to the Congress.

Stressing that agriculture was a focus area for the Modi government at the Centre, Gadkari said it was a complex issue and its remedy would take time.

Drawing a parallel, the minister said anything can happen in politics and cricket and it would be wrong to assume that the assembly results were giving a reflection of what would happen during the general elections next year.

He said development was the focus of the BJP and the Prime Minister Narendra Modi-led government, and they were ready to pay a political price for "certain stringent decisions" like demonetisation and GST, taken in the "interest of the country".

Speaking at the India Economic Conclave organised here by Times Network, the Minister for Road Transport and Highways said agenda of politics was different at national, state, district and municipal levels and it is highly difficult to predict on which issue a political party wins.

"As far as we are concerned, our agenda will be development and for this we have taken a few stringent decisions like demonetisation and GST. But I feel these issues should not be politicised as we are seeing its benefits in the form of reduction in black-money and improvement in the economy," he said.

"For the interest of the country if we have to take certain stringent decisions and if we have to pay a political price, we are ready for it," Gadkari added.

Admitting that there was an agricultural crisis and rural distress in the country, he said the government has been taking all necessary measures to ensure the sector grows significantly.

"Agriculture is our priority, but we need to understand that it is such a complex issue that there is no immediate solution and remedy to the problems of this sector and it will take time.

"Also, unless the rural and agri economy becomes robust, unless we increase the purchasing power of the large population and improve employment and boost manufacturing and services sectors, we will not be able to achieve overall development of the nation, and this is our priority," he said.

When asked if the BJP's defeat in three states has dented the party's image, Gadkari said, "It is matter of research on what parameters a voter elects a particular party during elections...Is it stability, economy or employment? But I feel that major part of politics is dominated by three Cs- cash, caste and criminals. Though this approach has changed to some extent, it still exists."

On the Maharashtra government's recent decision to grant 16 per cent reservation in education and government jobs to the Maratha community, Gadkari said, "No one is saying that he is forward and everyone wants to prove that he is backward...this is a fact. This is vote bank politics."

"There are people, who use reservation card strategically to win elections. But there are others who work on the grass-root levels and get elected every time," he said.

Talking about the defeat in Madhya Pradesh where the BJP ruled for 15 years under the leadership of Shivraj Singh Chouhan, the minister said, "After ruling for so many years, anti incumbency was bound to be there. But the outcome of 2019 Lok Sabha maybe or may not be same as that of the recent assembly elections."

"The agenda and subjects of all elections are different. The work which our government has done at the national level will be tested during the Lok Sabha elections only," he said.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
January 6,2020

Jan 6: India’s Finance Ministry has delivered a challenge to its revenue collectors: meet tax targets despite $20 billion of corporate tax cuts.

Through a video conference on Dec. 16, officials were exhorted to meet the direct tax mop-up target of 13.4 trillion rupees ($187 billion), a government official told reporters. Collection in the eight months to November grew at 5% from a year earlier, against the desired 17%.

The missive shows Prime Minister Narendra Modi’s urgent need to buoy public finances in a slowing economy where April-November tax collections were half the amount budgeted. Authorities withheld some payments to states and have capped ministries’ expenditure as the fiscal deficit ballooned beyond the target.

The government’s efforts to maintain its deficit goal goes against advice from some quarters, including central bank Governor Shaktikanta Das, who urged more spending to spur economic growth.

It’s uncertain though how much room Modi’s administration has to boost expenditure, given that it may already be borrowing as much as 540 billion rupees through state-run companies, a figure that isn’t reflected on the federal balance sheet. Uncertainty about public finances pushed up sovereign yields in November and December, compelling Das to announce unconventional policies to keep costs in check.

“This is not a time to conceal the fiscal deficit by off-budget borrowing or deferring payments,” said Indira Rajaraman, an economist and a former member of the Reserve Bank of India’s board. “If they were to stick to the target, that would be catastrophic because there is so much pump-priming that is needed right now.”

GDP grew 4.5% in the quarter ended September, the slowest pace in more than six years as both consumption and investments cooled in Asia’s third-largest economy. Only government spending supported the expansion, piling pressure on Modi to keep stimulating.

S&P Global Ratings warned in December it may downgrade India’s sovereign ratings if economic growth doesn’t recover. Government support seems to be waning now, with ministries asked to cap spending in the final quarter of the financial year at 25% of the amount budgeted rather than 33% allowed earlier. This new rule will hamstring sectors including agriculture, aviation and coal, where not even half of annual targets have been disbursed.

As the federal government runs short of money, it’s been delaying payouts to state administrations.

Private hospitals have threatened to suspend cash-less services to government employees over non-payment of dues, while a builder informed the stock exchange about delayed rental payments from no less than the tax office itself.

India is considering a litigation-settlement plan that will allow companies to exit lingering tax disputes by paying a portion of the money demanded by the government, the Economic Times newspaper reported Saturday.

The move will help improve the ease of doing business besides unlocking a part of the almost 8 trillion rupees ($111 billion) caught up in these disputes. The step, which is being considered as part of the annual budget, could also bridge India’s fiscal gap.

Finance Minister Nirmala Sitharaman has refused to comment on the deficit goal before the official budget presentation due Feb. 1.

A deviation from target, if any, “will need to be balanced with a credible consolidation plan further-out,” said Radhika Rao, an economist at DBS Group Holdings Ltd. in Singapore.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
Agencies
July 14,2020

Mumbai, Jul 14: Bhima Koregaon case accused Varavara Rao was admitted to JJ Hospital in Mumbai on Monday night.

Rao who is in Taloja proson was rushed to the hospital following complaint of dizziness.

Rao was arrested in November 2018 along with five others, for alleged links with Naxals and for inciting the violence.

On January 1, 2018, the violence at Bhima Koregaon village in Pune district left one dead and several others injured including 10 policemen.

Violence erupted after some people, reportedly with saffron flags, pelted stones at cars heading towards the village for the commemoration of 200 years of Bhima-Koregaon war on New Year's Day.

The police had filed 58 cases against 162 people.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
June 23,2020

New Delhi, Jun 23: With an increase of 14,933 new cases and 312 deaths in the last 24 hours, India's COVID-19 count reached 4,40,215 on Tuesday.

According to the latest update by the Union Ministry of Health and Family Welfare (MoHFW), 14,011 deaths have been recorded due to the infection so far in the country.

The rise in confirmed cases today is lower than the highest spike of 15 thousand plus cases registered on Sunday.

The count includes 1,78,014 active cases, and 2,48,190 cured/discharged/migrated patients.

Maharashtra with 1,35,796 confirmed cases remains the worst-affected by the infection so far in the country. The state's count includes 61,807 active, 67,706 cured, discharged patients while 6,283 deaths have been reported due to the infection so far.

Meanwhile, the national capital's confirmed coronavirus cases reached 62,655.

2,233 deaths have been reported in Delhi due to the infection so far.

Tamil Nadu has reported 62,087 cases so far with toll increased to 794.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.