Centre may feel pressure to loosen purse strings
TIMES NEWS NETWORK
New Delhi:12.12.2018
The BJP’s defeat in three crucial Hindi heartland states will increase the pressure on the ruling coalition at the Centre to resort to populist policies in the leadup to the 2019 general elections, but the scope seems to be rather limited given the tight fiscal situation.
The NDA has about four months to go before the 2019 Lok Sabha polls, and all eyes are on the vote on account which experts reckon could provide some indications of the promises that the BJP is likely to make as it seeks reelection nationally.
Farm unrest and distress have played a significant role in the BJP suffering Tuesday’s poll setbacks. However, the Centre is still expected to adopt a tough line on promises such as farm loan waivers as the view within the top leadership is against any populist giveaways.
At the same time, considering the need to win back the rural populace, the government is expected to bank on the string of schemes rolled out to make life in rural areas comfortable, such as the household electrification programme, the handing over of gas cylinders to needy families, the toilet building programme and the financial inclusion scheme Jan Dhan as well as affordable housing.
The Centre has already made the National Pension System more attractive for investors, with the biggest bonanza going to 18 lakh central government employees. The Centre will contribute 14% of basic salary to their pension corpus, up from 10%.
Experts expect more such measures in the vote on account with the promise to implement them after re-election. The Centre is also hoping to get some more resources if there is a framework drawn up for greater transfer of the Reserve Bank of India’s excess reserves to the government.
Here again, it may be linked to recapitalisation of banks and with a condition that it will not be used for meeting the general government deficit. The government has already signalled its commitment to meet the fiscal deficit target of 3.3% of gross domestic product set for the current fiscal. \ During the NDA’s four and a half year tenure, the PM has ensured that profligacy is reined in and the Central government adheres to the fiscal deficit target.
PM Modi at Parliament
TIMES NEWS NETWORK
New Delhi:12.12.2018
The BJP’s defeat in three crucial Hindi heartland states will increase the pressure on the ruling coalition at the Centre to resort to populist policies in the leadup to the 2019 general elections, but the scope seems to be rather limited given the tight fiscal situation.
The NDA has about four months to go before the 2019 Lok Sabha polls, and all eyes are on the vote on account which experts reckon could provide some indications of the promises that the BJP is likely to make as it seeks reelection nationally.
Farm unrest and distress have played a significant role in the BJP suffering Tuesday’s poll setbacks. However, the Centre is still expected to adopt a tough line on promises such as farm loan waivers as the view within the top leadership is against any populist giveaways.
At the same time, considering the need to win back the rural populace, the government is expected to bank on the string of schemes rolled out to make life in rural areas comfortable, such as the household electrification programme, the handing over of gas cylinders to needy families, the toilet building programme and the financial inclusion scheme Jan Dhan as well as affordable housing.
The Centre has already made the National Pension System more attractive for investors, with the biggest bonanza going to 18 lakh central government employees. The Centre will contribute 14% of basic salary to their pension corpus, up from 10%.
Experts expect more such measures in the vote on account with the promise to implement them after re-election. The Centre is also hoping to get some more resources if there is a framework drawn up for greater transfer of the Reserve Bank of India’s excess reserves to the government.
Here again, it may be linked to recapitalisation of banks and with a condition that it will not be used for meeting the general government deficit. The government has already signalled its commitment to meet the fiscal deficit target of 3.3% of gross domestic product set for the current fiscal. \ During the NDA’s four and a half year tenure, the PM has ensured that profligacy is reined in and the Central government adheres to the fiscal deficit target.
PM Modi at Parliament
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