Budget leans on resilience, paves path for Viksit Bharat

                      

                      Budget leans on resilience, paves path for Viksit Bharat

Budget 2024 is a significant milestone in India's journey towards becoming a developed nation, or Viksit Bharat, by 2047. It builds on the resilience established over the last two terms of the government led by Prime Minister (PM) Narendra Modi. The Economic Survey clearly laid out how the economy is on a strong footing while identifying challenges. Finance Minister (FM) Nirmala Sitharaman has skillfully navigated these important aspects of the economy. Despite the Opposition's political reservations, it is evident that the provisions in this budget are far-reaching and transformative. The primary focus is on employment generation, support to the middle class, agriculture growth, MSMEs, and urban infrastructure development. The budget also talks about next-generation reforms and improving factors of production.

We have to keep in mind that budget announcements are based on the demand of the Union ministries and the states and the assessment of their requirements by the finance ministry. These allocations can be increased during the year. Also, states not mentioned in the speech still get their due under the schemes.

Employment generation is a critical area. The budget ensures that job creation is directly and indirectly supported. The introduction of an internship program for 10 million youth at 500 top corporations, financed and supported by the government, is a notable initiative. It is designed to bridge the gap between education and industry requirements. Support for first-time employees through the first month's salary being paid by the government and Provident Fund (PF) and National Pension System (NPS) contributions are welcome steps. Upgrading of the Industrial Training Institutes (ITIs) and training two million youth will further empower the workforce, including women workers.

The FM has also focused on the MSME sector with enhanced credit guarantees, reworking the Non-Performing Assets (NPA) identification process, and raising the Mudra loan limit to ₹20 lakh. Most importantly, the credit assessment model has been improved to ensure that deserving enterprises receive the necessary financial support. The manufacturing sector will benefit significantly from the allocation of 1 lakh crore for innovation and research, as well as funds for start-ups. The abolition of the angel tax, a major demand of start-ups, will bring a new line of capital investment, fostering a culture of innovation and entrepreneurship. The budget also provides much-needed tax relief to the middle class. The increase in the standard deduction limit and reduced tax rates across all slabs will provide respite to millions of households. This demography will also benefit from infrastructure development, with an impressive allocation of ₹11.11 lakh crore aimed at enhancing the ease of living.

Agriculture and the rural population have received special attention. The government has allocated funds for the construction of 30 million new houses under the Pradhan Mantri Awas Yojana. These initiatives aim to improve living conditions and provide much-needed relief to rural communities. The government's exemplary work in delivering social welfare through digital infrastructure is evident in this budget. The Viksit Bharat vision entails welfare schemes reaching every section of the population. The allocation to the Mahatma Gandhi National Rural Employment Guarantee Scheme and the initiation of the Janjatiya Unnat Abhiyan are steps towards achieving saturation in tribal villages.

The budget also emphasizes sectors such as tourism, energy, urban development, manufacturing, and support for women and youth empowerment. Each of These areas has found a place in the budget, with targeted initiatives aimed at boosting growth and improving the standard of living. The comprehensive approach ensures that every segment of society benefits from the nation's progress.

Innovation and research are key components of this budget, with substantial funds allocated to foster a culture of creativity and technological advancement. Next-generation reforms, including a new economic policy framework, new tax levies, and easing of tax compliance, have been thoughtfully implemented. These measures aim to improve overall productivity, creating a more efficient and competitive economy.

In conclusion, the budget is a significant step towards building Viksit Bharat. It lays a solid foundation for a prosperous and resilient economy where all segments of society are taken care of. The government's focus on employment generation, infrastructure development, and social welfare is commendable. Together, we will build a prosperous and resilient India, ensuring that every citizen benefits from the nation's progress.

Gopal Krishna Agarwal is the National spokesperson of the Bharatiya Janata Party on economic affairs.

How India Can Leverage its cultural riches to stimulate its economy

 India has a glorious past. At one point in time it contributed more than 25% to the world’s GDP and controlled about 28% of global trade and commerce. Being an economic power for several centuries, India played a leadership role in all fields- whether it is art, culture, music, dance, food, festivals, architecture or handicrafts. Indian civilization’s contribution to the world heritage has been immense. Unfortunately, history took an unpleasant turn and India saw foreign occupation for almost a millennia; in these thousand years we were robbed of our glory and wealth.

There is a close inter-relationship between the culture and the economy. Our economy was an important factor for our glorious civilization and cultural heritage. The reverse also held true - our cultural content contributed to our strong economy. If India has to assume global leadership position again, it has to be an economic power first. We can use our cultural wealth to catalyze India’s economy.

India's potential in the field of culture is immense. However, there is a lack of understanding on how to put this accumulated cultural wealth over millennia to achieve economic growth. For realizing the true potential of India’s imbedded cultural content, and identifying variables and their interrelationship for evidence based decision making and resource allocations, we have to work on multiple dimensions of cultural economy; what are its performance and potential Indicators, how monetization can lead to unlocking valuations of cultural activities, what are its financial requisites to be fulfilled by innovative financial instruments for sustainability. According to a study only about 20% of cultural organizations worldwide consider themselves financially sustainable.

Government is an important driver of any initiative. Therefore Cultural Economic Governance assumes great importance at the stage of policy formulation and its implementation. Cultural sector directly employs about 45 lakh people as artisans, performers, tourism guides etc. In addition, handicrafts and traditional art industries provide employment to about 60 lakh people. Through introduction of new curriculum and vocational studies in the education system, the government has to work on skilling and capacity building of these stakeholders. According to a report by the Ministry of Rural Development, only 10% of rural artisans have access to formal training programs. It is estimated that capacity building initiatives in cultural sectors can lead to a 20-30% increase in productivity and revenue for cultural enterprises. A survey conducted by UNESCO found that 70% of traditional artisans feel their skills are not aligned with current market demand.

Establishing social and economic linkages for performing arts can propel growth in all art forms, contributing to huge employment and revenue generation. The Indian film industry alone contributes around Rs 180,000 crore annually to the economy but its global potential is still unexploited. Yoga in the USA has become a 15 billion USD business annually. Is there a way to ensure that the economic benefits of the wider acceptance of Yoga flows to India? All these and other important sectors have to be extensively worked on.

The civilisational wealth that we have inherited from our ancestors can be put to use only after we start taking pride in them. We are fortunate that, with the rise of aspirational Indians, there is a revival of pride in our cultural traditions and civilization values in the country. Initiatives like building Ram temple at Ayodhya; its ambitious redevelopment project, costing over Rs 85,000 crore is to be completed by 2031 transforming the city to accommodate a footfall of around 3 lakh pilgrims daily. Kashi Vishwanath Temple had 20,000-30,000 daily visitors before redevelopment; after the revamp, the daily number of visitors increased to 1.5-2 lakh. There are approximately 2 million temples across India, in addition to their religious and spiritual importance, temples were designed to serve as commercial centres attracting tourists/pilgrims and support business activities in the areas of retail, transportation, and hospitality. Festivals in India are estimated to contribute Rs 2 lakh crore annually. According to a CII report, Kumbh Mela in 2019 generated business over Rs 1.2 lakh crore whereas the State of UP had to spend only Rs. 4,200 crores for the event.

Prime Minister Modi is working on realizing this vision further by setting up Tamil Cultural Centers across the globe and showcasing India's diverse and vibrant cultural heritage to the world leaders through the G20 platform. India has 42 UNESCO World Heritage Sites as of now. A total of 46 new projects have been sanctioned and 27 new pilgrimage sites have been identified across India for development of infrastructure and tourist amenities for enriching the religious tourism experience under the PRASHAD scheme of the Central government. Spiritual and religious tourism in India commands a significant portion of the travel and tourism sector, holding a 30% market share and accounting for 60% of the domestic tourism market.

What we require is to develop a comprehensive Cultural Economic Model. This Model will serve as a catalyst for our nation’s economic growth, till we become a developed nation by the year 2047. Our cultural economic model will also be a case-study for other economies to emulate and propel their own economic growth using their social and cultural wealth.

The author is National Spokesperson of BJP.

 

     India must use its cultural wealth to be global economic power

Cultural economic governance assumes great importance at the stage of policy formulation and its implementation 
India has a glorious past. At one point in time, it contributed more than 25 percent to the world’s gross domestic product and controlled about 28 percent of global trade and commerce. Being an economic power for several centuries, India played a leadership role in all fields – whether it is art, culture, music, dance, food, festivals, architecture, or handicrafts. Indian civilization’s contribution to the world heritage has been immense. Unfortunately, history took an unpleasant turn and India saw foreign occupation for almost a millennia; in these thousand years, we were robbed of our glory and wealth.

There is a close interrelationship between the culture and the economy. Our economy was an important factor for our glorious civilization and cultural heritage. The reverse also held true – our cultural content contributed to our strong economy. If India has to assume a global leadership position again, it has to be an economic power first. We can use our cultural wealth to catalyze India’s economy.

India's potential in the field of culture is immense. However, there is a lack of understanding on how to put this accumulated cultural wealth over millennia to achieve economic growth. For realizing the true potential of India’s imbedded cultural content, and identifying variables and their interrelationship for evidence-based decision-making and resource allocations, we have to work on multiple dimensions of cultural economy; what are its performance and potential indicators, how monetization can lead to unlocking valuations of cultural activities, what are its financial requisites to be fulfilled by innovative financial instruments for sustainability. According to a study, only about 20 percent of cultural organizations worldwide consider themselves financially sustainable. The government is an important driver of any initiative. Therefore, cultural economic governance assumes great importance at the stage of policy formulation and its implementation. The cultural sector directly employs about 4.5 million people as artisans, performers, tourism guides, etc. In addition, handicrafts and traditional art industries provide employment to about 6 million people. Through the introduction of new curriculum and vocational studies in the education system, the government has to work on skilling and capacity building of these stakeholders. According to a report by the Ministry of Rural Development, only 10 percent of rural artisans have access to formal training programs. It is estimated that capacity-building initiatives in cultural sectors can lead to a 20-30 percent increase in productivity and revenue for cultural enterprises. A survey conducted by UNESCO found that 70 percent of traditional artisans feel their skills are not aligned with current market demand.

Establishing social and economic linkages for performing arts can propel growth in all art forms, contributing to huge employment and revenue generation. The Indian film industry alone contributes around Rs 180,000 crore annually to the economy but its global potential is still unexploited. Yoga in the United States has become a $15 billion business annually. Is there a way to ensure that the economic benefits of the wider acceptance of Yoga flow to India? All these and other important sectors have to be extensively worked on.

The civilization wealth that we have inherited from our ancestors can be put to use only after we start taking pride in them. We are fortunate that, with the rise of aspirational Indians, there is a revival of pride in our cultural traditions and civilization values in the country. We have had initiatives like building the Ram temple in Ayodhya: Its ambitious redevelopment project costing over Rs 85,000 crore will be completed by 2031, transforming the city to accommodate a footfall of around 300,000 pilgrims daily. Kashi Vishwanath Temple had 20,000-30,000 daily visitors before redevelopment; after the revamp, the daily number of visitors increased to 1.5-2 lakh. There are some 2 million temples across India, in addition to their religious and spiritual importance, temples were designed to serve as commercial centres attracting tourists/pilgrims and support business activities in the areas of retail, transportation, and hospitality. Festivals in India are estimated to contribute Rs 2 trillion annually. According to a CII report, Kumbh Mela in 2019 generated business over Rs 1. trillion and Uttar Pradesh had to spend only Rs. 4,200 crore for the event.

Prime Minister Narendra Modi is working on realizing this vision further by setting up Tamil Cultural Centers across the globe and showcasing India's diverse and vibrant cultural heritage to world leaders through the G20 platform. India has 42 UNESCO World Heritage Sites as of now. A total of 46 new projects have been sanctioned and 27 new pilgrimage sites have been identified across India for the development of infrastructure and tourist amenities for enriching the religious tourism experience under the PRASHAD scheme of the central government. Spiritual and religious tourism in India commands a significant portion of the travel and tourism sector, holding a 30 percent market share and accounting for 60 percent of the domestic tourism market.

What we require is to develop a comprehensive Cultural Economic Model. it will serve as a catalyst for our nation’s economic growth, till we become a developed nation by the year 2047. Our cultural economic model will also be a case study for other economies to emulate and propel their own economic growth using their social and cultural wealth.

The writer is a national spokesperson of the BJP and patron, MCES 2024

                                              

                                               Culture as a driver of economic growth

By Gopal Krishna Agarwal,

Gopal Krishna Agarwal analyses the rise of Narendra modi and its impact on Business sentiments, trade and investments in India.

Narendra Modi chief minister of Gujarat was appointed a member to the parliament Board the highest decision making body of Bharatiya Janata Party in March this year. Later in September, He was declared the Prime Minister Candidate of the National Democratic Alliance (NDA). In 200, He Became Gujarat’s CM and after reelection in 2002, 2007 and 2012, heads a corruption free, transparent and an efficient administration in the state. Though regularly attacked for the 2002 Gujarat riots. Modi is also praised for outstanding administration in turning Gujarat into an economic powerhouse. He has been successful in bringing the development plank as an election agenda.

Will India Shine Under NaMo?

Though Modi’s appeal cut across all classes, regions, and age groups, it would not be an exaggeration to say that the Indian business community, youth and burgconing middle class are the biggest votaries of Narendra Modi. The fact that the Indian business community, generally obsequious and fawning before government of the day has risked the wrath of the present regime in doing so speaks volumes.  

The economy is going through done of the most difficult times in recent memory. The UPA II government instead of navigating the economy through the turbulence caused by global factors, has exacerbated it through clumsy policies, entitlement schemes without proper budgeting and the worst kind of kleptocracy. There are both political and economic factors affecting business sentiments, trade and investments. Politically, we have a situation where there are different centers of power and responsibility. A cabinet in which ministers pull and different directions and a government that a lacks conviction in its own policies. The present macro economic situation is rife with sticky inflation, rising fiscal as well as current account deficits falling rupee slow pace of reforms and an overall policy paralysis. These two sets of factors have dealt crippling blow to business sentiment and trade and investments. We are in a situation where the finance minister of the country is trying to convince global capital to come to India of a time when even Indian capital is looking for markets abroad.

In order to crystal gaze the impact of the rise of Narendra Modi on Business sentiments, trade and investments. It would be pertinent to analyze the philosophy underpinning the policies of the Gujarat Government headed by him. While there is a small but vocal group backed by rival political parties and other vested interest that questions every figure that show Gujarat in positive light, their efforts have failed to hide the state’s inexorable rise under the leadership of Narendra Modi a fact that is now also acknowledged by the international community. This also relegates to the background the claim that figures are being manipulated to present a positive picture.

Modi Mantra in Gujarat    

So what are the defining characteristics of Narendra Modi’s style of managements that is relevant from the macro-economic points of view? He has focused on ‘less government and more governance, which broadly means unobtrusive but effective government. His e-governance model with decentralized decision making and power is his major forte. He has also emphasized on a transparent corruption free, consensus oriented good governance model with emphasis on inclusive participation, timely clearance of project proposals focus on infrastructure improvement and revival of agricultural sector.  The government follows the rule of law with efficiency and effectiveness and is accountable to the people. His decision-making is quick and timely and believes in single window clearance as we seen in the case of Tata’s Nano project. Gujarat under Modi’s leadership has excelled in infrastructure development and has created world class linkages acting as a backbone in the present global compitetive scenario. The successful functioning of the BRT public transport system in Ahmedabad is one such shining example. He has been instrumental in creating urban landscape at par with international standards. Gujarat has successfully implemented power sector reforms and is supplying 24*7 powers to 100 percent of villages.

Modi Means Business

The Government under modi would definitely improve business sentiment leading to an increase in both trade and investment. Sustained growth rarely occurs and autopilot. It requires competent leadership at the top. The most fundamental change from the present government would be the absence of the dual power centres. The de jure center of power would also be de facto one. This would impart realism in policy formations which is greatly missing today. The right of centre ideology subscribed to by the BJP and Modi does not see itself in an adversarial relationship vis-à-vis the business community, but as partners to realize the potential of the country. This in itself would be a major change that would affect business sentiment  positively. The NDA under the leadership of BJP was focused on improving physical infrastructure, which would continue under modi. We are trained to think that the best rate the agriculture sector in India can achieve is 4 percent, but this has been believed by Gujarat experience. Where the agricultural sector grew by around 10 percent for more than a decade. We should therefore expect a paradigm shift in the way the agricultural sector would be dealt with under Modi.  This focus on physical infrastructure and agriculture would remove supply bottlenecks and would bring down inflation. Better infrastructure would also make our exports more competitive and boost trade. A lower rate of inflation would allow the monetary authority to lower interest rates and thus revive investments. A focus on urban infrastructure for rural areas and rising rural income would also augment domestic demand, as more than 60 percent of our total population is living in rural areas. It was under the NDA government that the FRBM Act was enacted and fiscal responsibility targets were met. At the National level the BJP is assimilating good governance models of its various state governments and intends to replicate them on a Pan India Basis, whether it is the socially inclusive focus of Madhya Pradesh government or the Public Distribution System (PDS) of the Chhattisgarh government. Modi would also put the economy back on the path of fiscal consolidation considering his treatment of state owned enterprises in Gujarat, it would not be wrong to expect that they would be given operational freedom to achieve efficiency and scale.

First among Equal

How does Narendra Modi fit in the whole scheme of things? It is an undeniable fact that Modi is first among the present day BJP leadership Modi has a very wide acceptance amongst young voters and considering the present Indian demography, is most suited to capture the youth bulge. In the 2014 elections, around 120 million voters would be voting for the first time. In is under his leadership that the party has the most realistic chances of surpassing its previous tally of 182 seats. It has been the experience that voters consolidate towards the winner in sight. As far as his ability to bring coalition partners on board is concerned, we already see two parties jockeying to align with BJP in Haryana. These would improve with the elections drawing near. It has anyway been the experience that parties come together to form the government only after elections and very few parties enter into a pre-poll alliance. Future uncertainly harms business sentiments to a great extend but as we move towards overcoming this uncertainty one sees gradual improvement in business sentiment.

People who grudgingly accept the development of Gujarat under Narendra Modi claim that this success cannot be replicated at the Pan Indian level as he would be hamstrung by coalition partners and powerful leaders within BJP unlike Gujarat where he virtually has free rein. We believe that not only would he be able to repeat the success of Gujarat, But would also surpass it. It should be noted that considering the very limited powers of state in India. Narendra modi’s achievements are indeed commendable. He has infused new hope and confidence in the people of the country. Particularly the youth that comprise 65 percent of the total population. He has been able to generate the can-do spirit that is evident in the national and international business and political community. Under the stewardship of Narendra Modi. India would be able to achieve its true economic potential and become an economic super power. 

        

         India has become engine of growth for global economy

By Gopal Krishna Agarwal,

While many countries in Europe are reeling under recession, India is an outlier, one of the fastest growing economies in the world and attracting the highest fdi

India has become the engine of growth for the global economy under the present government at the Centre, headed by Prime Minister, Narendra Modi. When we came to power in 2014, our economy was facing twin balance sheet problem, the banks were extremely weak and the corporate sector was highly leveraged and not in a position to service debts. Due to several initiatives, the economy is deleveraged and the banking sector is strong now, says Gopal Krishna Agarwal, National Spokesperson of Bharatiya Janata Party, in an exclusive interaction with Bizz Buzz

What is your view about India becoming $5 trillion economy?

Very heartening to know that, Indian GDP is moving towards $5 trillion, not only Indian economy is doing good, it is the fastest growing major economy of the world for two consecutive years, and is poised to be the same for the coming year too. In fact, India has become the engine of growth for the global economy. When we came to power in 2014, our economy was facing twin balance sheet problem, the banks were extremely weak and the corporate sector was highly leveraged and not in a position to service debts. Due to several initiatives, the economy is deleveraged and the banking sector is strong now. Banking Sector reforms include NPA resolution, IBC and Capital infusion. Thus, the country’s economy is deleveraged, and can go for fresh investments from the private sector. Leadership and vision makes all the difference, it was possible due to able macroeconomic management by Modi government.

What is your view on inflation? Inflation has come down from double digit to less than 5 per cent to at 4.25 percent retail inflation and food inflation at 2.91 per cent. What is your comment on GDP growth? As per NSSO data Indian GDP growth rate is at 7.2 per cent (despite global headwind) and Q4 GDP growth rate is 6.1 percent YoY, punctures hole in the narration of pent up demand. Earlier, predictions had been made that the GDP growth rate will come down going forwards. But figures show that Indian economy is headed in the right direction and there is considerable momentum. Please throw some light on collection of direct and indirect taxes.
GST collection in April 2023 was at Rs 1.87 lakh crore, despite reduction in average net GST rate to 11.6 per cent as per RBI report. Similarly, direct tax collection was to the tune of Rs 16.61 lakh crore, an increase of 17.63 per cent over last year (FY23). Of course, we achieved this in spite of reduction in corporate tax and higher exemption in personal tax. Your view on other economic parameters like PMI, IIP etc. Purchase manager Index (PMI) for the manufacturing sector currently stands at 57.2 whereas in case of services sector, it was at 62, which shows the highest after 13 years. Both are in the expansionary mode. Coming on IIP, the figure for April is 4.2, up from March 2023, shows robust growth in the manufacturing sector. In terms of infrastructure standing, Capex of the government has increased to 3.3 percent of GDP. Average share of Capex to total expenditure is 16.8 percent, this shows increase in the quality of expenditure of the Union Government.

How can we say that the country was having its robust economy at present? Well, major data points to robust economy include FDI in year 21-22 was $84.8 billion, exports have crossed $770 billion in 2022-23. Moreover, the country has the third largest startup ecosystem and 115 Unicorns. Besides, India boasts of having the highest digital payment at Rs 15,468 lakh crores value digital transactions. Not only that, India ranks first in fintech adoption. We are among the top mobile manufactures in the world. Above all, Air India disinvestment is the best example of privatization of PSE policy. How can we say that govt is moving in the right direction? Govt has been working in a team spirit with the financial institutions particularly RBI and Ministry of Finance. The test of independence of an institution is not an adversarial relation with the govt but working together to make a strong economy. Leadership and vision makes all the difference, able macroeconomic management by Modi government, the counter cyclical measures taken by the RBI and the ministry and the staggered approach in the fiscal stimulus package- Aatma Nirbhar Bharat Package have helped the Indian economy to recover post Covid, and manage inflation, recession and fiscal deficit. Give some examples of formalisation of economy and policy reforms. They include GST, E assessment, DBT, financial inclusion, IBC, PLI, fintech, UPI, digital India, audit trail. Can you explain future orientation of Budget? This is visible by facts like AI, renewable energy, blockchain, green hydrogen, connectivity, cultural economy (art, culture, music, dance, food, festival, architecture, tourism).

What are the major achievement of Narendra Modi govt? The major achievements have been management of Covid pandemic and economic recovery package thereafter. The pandemic has caused global disruption among major economies. US the largest economy in the world is facing unprecedented inflation not seen for the last 40 years of its history. One country after another in Europe reeling under recession whether it’s UK, Germany, France and, even China has not come out of the shock it received from the forced lockdown during Covid19. India is an outlier, one of the fastest growing economy in the world, attracting highest FDI. Banks after banks in US and Europe are failing and are going for bankruptcy. There central banks do not seem to have the road map to deal with the situation. They lack institutional capability to oversee crisis. Contrast this the way our government and institution have dealt with the problem of pandemic. Due to visionary approach and concerted efforts of the government and the institutional resilience to meet the crises, all the three major macroeconomic parameters inflation, recession and fiscal deficit are in healthy domain. International institutions, Morgan Stanley report points towards healthy growth prospects for the Indian economy. Google’s Economy report says that internet economy of India will grow 5 times between 2023 and 2030 and will contribute about 12-13 per cent of GDP. Enablers like Aadhar, UPI, Digi locker, ONDC, Unified Health interface, India stack, Rupay and NPCI network abroad, and software services is expected to be a big export growth area. On this background I would like to state that the global interest in India is steaming from the realization that in the coming decades the economic activity is moving toward India. India will be a major driver for global economy. All this is because we have a determined and visionary leadership in Shri Narendra Modi Ji.

Congress violated basic principles of tax, lost exemption

By Gopal Krishna Agarwal, 

The BJP on Friday reacted strongly to Congress allegations that the government is targeting it through tax notices and freezing of bank accounts.

"The I-T exemption that parties get is based on certain conditions. Congress has violated the basic condition mandated by EC for tax exemption," BJP national spokesperson Gopal Krishna Agarwal told ET.

Agarwal  said that Congress got cash donations above Rs 2,000, which is against the rule.

"The Congress received Rs 14.5 lakh in cash over Rs 2,000. These violations and late returns cost them their exemption under Section 13(A) of the I-T Act," he stated.

Once a political party loses tax exemption, all its income becomes taxable and all expenditure under income from other sources is disallowed.

Agarwal further said the IT department issued several notices to Congress, but they didn't respond.

"The notice of demand for Rs 135 crore tax given to Congress for the assessment year 2018-19 is after the party lost the exemption," he added.

The BJP leader said that Congress filed an appeal before the Income Tax Appellate Tribunal but didn't pay the mandatory 20% of the total liability required to hear the matter.

"Congress has gone to appeal in ITAT as well as High Court but all their appeals have been rejected. The matter is in the Supreme Court now," Agarwal said.

He said that the Income Tax department's action is based on the incriminating material seized during search operations which indicated extensive usage of cash by the party.

           Dark side of election time welfare Promises

The Narendra Modi government has been in office for about 10 years now. It has its share of hits and misses. If the Opposition was sincere and serious, it should have attacked the government for misses, though few and far between, and presented an alternative agenda to the public. Unfortunately, the Opposition has failed to come up with any positive alternative agenda. Instead, with elections on for five state assemblies, the opposition parties are making all sorts of promises in their manifestos.

Most of these poll promises (freebles) can't be fulfilled. These parties, probably, have no intention to fulfil them there are no provisions in the state budgets or off budget borrowings to fulfil these promises State finances are mostly in the doldrums. The federal structure in India has no provision for bankruptcy of a state, otherwise states such as Punjab and Rajasthan, reeling under heavy debt, may face bankruptcy. They are a big drag on India's fiscal consolidation roadmap. These election promises can be classified into four categories. One category would consist of such promises that the parties making them have no intention of fulfilment. Such promises could range from giving gold chains to women or the promise of blanket loan waivers to farmers.

The second would be those that need the diversion of precious public resources from productive developmental expenditure to wasteful expenditure. The Congress led government in Karnataka is diverting funds to the tune of ₹ 40,000 crore from developmental projects for poll promises. The deputy chief minister of that state is on record saying that the state will have no funds for development expenditure because the funds will go to fulfil poll promises. The extravagant promises by the Congress government in Rajasthan and the BRS government in Telangana, should these parties come back to form the government, will ensure that there would be no money left for capital expenditure.

 The third category of promise entails the creation of future liabilities for the public but hiding them from the public through financial jugglery. Delhi is a classic case where under-recovery on the supply of electricity is leading to the creation of regulatory assets Electricity distribution in the city was privatised long back. These private companies are not able to recover costs including a fixed rate of return on capital employed.  This under recovered amount constitutes "regulatory assets in the balance sheets of these private distribution companies. The total figure for FY 2021-22 for the three private power distribution companies comes to ₹ 18.578 crore. If we conservatively assume the carrying cost for this amount to be 8% per annum, the annual interest payable to the distribution companies would come to around ₹ 1,486 crore. This interest burden will be payable by the electricity consumers of Delhi in the future. During 2004 14,  the United Progressive Alliance government issued oil bonds to the oil marketing companies to the tune of ₹ 1.25 lakh crore.  Similarly, there was off bud get borrowing to the tune of ₹ 2 lakh crore by the Food Corporation of India These amounts were paid by the Modi government.

The fourth category of promises is a reversal of the measures of economic reform.  Reversion to the Old Pension System (OPS) is non -Bhartiya Janata Party (BJP) ruled states is a prime example of this. The New Pension Scheme (NPS) was a major economic reform of the Atal Bihari Vajpayee led National Democratic Alliance government and had moved the pension liability of the government from being unfunded to fully funded. The benefits of this far-sighted reform were to become evident a few decades down the line. However one state government after the other is jettisoning this together a few extra votes from government employees.

The BJP is working relentlessly to provide fiscally prudent and responsible social welfare schemes and expose the false promises of the Opposition. We believe in empowerment. not entitlement, and the difference is evident in sound current macroeconomic fundamentals like Gross Domestic Product growth, fiscal deficit, inflation and foreign exchange reserves.

 The point is fiscal resources should be utilised in a targeted way with provisioning in the budget, as government need to spend or diverse areas with fiscal prudence.

 Gopal Krishna Agarwal is the national spokesperson of the BIP for economic affairs.