“PM’s announcements are not a ‘Mini-Budget’ says Venkaiha Naidu. Modi in his speech on TV on New Year's eve announced few sops for poor and middle class people - cheap home loans,
interest waiver for farm loans; Kissan Credit Cards - RuPay debit cards ; senior citizens would be assured of a fixed 8% interest on their deposits of up to Rs 7.5 lakhs for 10 years; to raise cash credit limit to small businesses; for small entrepreneurs - credit guarantee would be raised from Rs 1 crore to 2 crore.; Also, he said, Rs 6,000 would be to be transferred to the accounts of pregnant women in poor districts. Such schemes implementations are like Budget passed without any discussions in Parliament. Is it a democratic way?
Modi is copying Jayalalithas freebies/ cheap pricing policy for poor. She became God for poor. So Modi is targeting/exploiting poor as vote bank politics now (Nothing wrong in it).
In fact these are part of normal budget exercise – it is a mini budget but Mr Venkaiah Naidu says it is not a mini budget. Yes, it is a trailer of forthcoming Union Budget – which shall be ‘ek ticket mein do khel’- two budgets combined first time - Rail Budget and Union Budget’. Modi never waits for budget – as and when he feels he announces schemes for poor people. It is good that the list of such schemes is endless for the poor. From where money shall come for implementation of all the schemes announced by Modi? Naturally sources are from citizens’ only tax payers, doing away with subsidies and black money unearthed by the government at national levels. But where is account of unearthed foreign black money with billionaires and politicians. I-T raids are in news but what are their end results? Why public is not informed of such end results?
One should not expect soft budget. Whatever concessions which may be offered, shall be taken back in some other way by removing present concessions and deductions. It would be figures jugglery. The net impact of cash savings if any with tax payers is the moot question. Wait and watch who gets such reduction in net tax liabilities-cash outflows?
Another way of sources is Deficit Financing but that is risky as it leads to inflation which is too high at present. And if money is saved from taxes that are eaten by inflation –what is its use?