Rahul echoes Kejriwal on PM Modi allegation, BJP says no one trusts him

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.

New Delhi, May 28: With 6,566 more coronavirus cases and 194 deaths reported in the past 24 hours, India's COVID-19 tally reached 1,58,333 on Thursday, according to the Union Ministry of Health and Family Affairs.

The number of active coronavirus cases stands at 86,110, while 67,692 people have recovered and one patient has migrated, it said. The death toll due to the infection has reached 4,531 in the country.

Maharashtra is the worst affected state with 56,948 cases. Tamil Nadu has recorded as many as 18,545 cases while Gujarat and Delhi have recorded 15,195 and 15,257 coronavirus cases respectively.

Jaipur, Jul 18: BJP leader Laxmikant Bhardwaj filed a complaint against Congress leaders including Randeep Surjewala and Govind Singh Dotasra for associating Union Minister Gajendra Singh Shekhawat's name with an alleged audio clip related to "conspiring to topple" the elected government led by Chief Minister Ashok Gehlot in Rajasthan.

"Mahesh Joshi, Randeep Surjewala, and other accused have regularly been giving false and inflammatory statements against the BJP to criminally damage its reputation so that the blame for the current sorry state of affairs of the Congress can be pinned on the BJP. With the ill-intention of damaging the BJP''s reputation, a conspiracy was formed at the Chief Minister''s residence situated at 8 Civil lines," read the letter written by BJP Rajasthan spokesperson Bhardwaj to the Station Officer of Ashok Nagar police station read.

"From there (CM's residence) imitation of (voices) of people were falsely told to be of that of reputed leaders from the BJP and a fake phone conversation was created through which the false narrative of crores of rupees being offered to buy off Congress MLAs was created. The accused involved in this conspiracy have severely misused their position and power and the whole crime has been conducted by one named Lokesh Sharma, who calls himself an OSD of the Chief Minister," the letter further stated.

The complaint letter also said that Lokesh Sharma had "released three audio tapes to media workers on July 16, 2020, somewhere around 8:25 pm through WhatsApp so that the defamatory material can be circulated on a large scale to fulfill the criminal intent."

Mr Bhardwaj said that a news report in the Jaipur edition of a Hindi newspaper, published on July 17, 2020, had conveyed that the audiotape was released by Mr Sharma.

He further said that Congress leaders Randeep Surjewala, Govind Singh Dotasra, in a press conference held on Friday read out the conversation in the audio tapes publically and "using them as a basis accused the BJP of throttling democracy, sabotaging the mandate, and toppling the government."

Through this conspiracy, Mr Bhardwaj said that hateful and insulting comments are being made on the BJP and its supporters, and "on the basis of this the Special Operation Group (SOG) has filed fake lawsuits under Section 124A of the Indian Penal Code and is also threatening BJP leaders of arrest."

The BJP leader has urged the police officer to file a complaint against Mr Sharma, Mr Surjewala, Mr Dotasra, and others involved in the alleged conspiracy and take necessary action and recover the equipment used by them.

On June 17, Congress spokesperson Randeep Surjewala had accused Union Cabinet Minister Gajendra Singh Shekhawat and Congress legislator Bhanwarlal Sharma of conspiring to topple the elected government led by Chief Minister Ashok Gehlot in Rajasthan and subvert the voters' mandate.

"Yesterday, shocking tapes were aired by the media in which Union Minister Gajendra Singh Shekhawat, BJP leader Sanjay Jain and Congress MLA Bhanwar Lal Sharma spoke about bribing MLAs and bringing down Rajasthan government. Congress has suspended MLAs Bhanwar Lal Sharma and Vishvendra Singh from the primary membership of the party. The party has also issued show-cause notices to them," Mr Surjewala had said.

"We demand Rajasthan government and Special Operations Group (SOG) to register FIR and arrest the culprits as plenty of evidence has surfaced now," he had further stated.

Mr Surjewala had read out a transcript of an audio of alleged horse-trading between rebel MLAs and BJP, stating, "BJP has breached the trust of people. The audio clip reveals a horse-trading deal. This is a dark chapter in the history of democracy."

"This time the Narendra Modi government has challenged the wrong state," the Congress leader had said. He had alleged that the BJP has been "conspiring to topple Rajasthan government and buy legislators' allegiance."