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PM Modi influencing CAG to escape blame for demonetisation, GST

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Prime minister Narendra Modi (photo ANI)

Prime Minister Narendra  Modi increased tax base by  way of implementing demonetisation and now has  influenced CAG to not audit the loss to public exchequer  and the pain and agony caused to  the countrymen due to his faulty and  inept  decision.

The sudden U-turn by the Comptroller and Auditor General of India on the effect of demonetisation appears to have been influenced by the Modi government that seeks to escape the blame for their inept handling of financial matters.

Earlier, during the days of Congress rule, CAG  had emphatically calculated  the presumptive loss suffered in the allotment of telecom licences that led to the loss of UPA’s credibility and the fall of Manmohan Singh government.

CAG Shashi Kant Sharma had told in the month of March 2017 that “Demonetisation per se is a banking and money supply issue and as such, outside the CAG’s audit jurisdiction. But the CAG is well within its rights to seek audit of fiscal impact of demonetisation, largely its impact on tax revenues. That way the issue gets linked with the public exchequer.”

He pointed out that there are other linkages of demonetisation with the public exchequer that will also be covered by the audit. This would be “expenditure on printing of notes, RBI dividend to the Consolidated Fund, etc.” the CAG said.

Aware of the cumulative loss now occurred due to his faulty decision of demonetisation followed by another disastrous GST  that necessitated capitalization of banks thus turning topsy- turvy the economy of the country, Prime Minister Narendra Modi have told CAG that he cannot audit the losses of such reforms as these are the policy decisions of his government.

The immediate affect of the sudden withdrawal of the high valve currency notes was on lakhs of urban and rural labourers and migrant workers as employers had no cash to pay their wages. Therefore, the joblessness that started with demonetisation and has increased to such an extent that people are committing suicides and crime graph has also increased steeply.

PM Modi’s inept handling seriously damaged the country’s economy resulting into rendering the people penniless with economy grinding to a stand still for one year unheard of in any other country. Modi even changed his narratives and rules more than 100 times after banning the currency that resulted in adding further chaos.Over 100 lives were lost as people were compelled to stand in queues outside the banks for want of cash. Banks were directed to allow withdrawal of maximum Rs10,000 to a person in a week and the rule of curtailing the withdrawal of cash from ATMs (ie.upto Rs 25000) exists even now.

Then, due to Modi’s second financial reform of Goods and Services Tax (GST), petty and medium traders were largely affected  and small and medium industries had to shut down. Textile industries protested against the GST and the inflation has increased sharply thus affecting the Middle Class  and common man badly.

Prime Minister Narendra Modi’s gamble brought down India’s GDP growth and Finance Minister Arun Jaitley defended the move saying that idea behind demonetisation was to not just eliminate black money but also to increase transparency, digitisation, tax base, formal sector, minimize the cash in the economy and to curb terror funding.

The Modi government was hugely benefited due to the massive revenue collected by the savings of the hard earned money of the people by terming it as black money   and  diverted revenues to digital companies that erupted after demonetisation.

Because of the complicated system inbuilt in the GST, the business people had to hire Chartered accountants  for filling their tax returns thus further reducing their profits.The main motive behind demonetisation and GST was to increase the tax base  on  farmers and even beggars etc.

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By: Arti Bali

Senior Journalist

DISCLAIMER : Views expressed above are the author’s own.

Analysis

Blow to BJP ahead of 2019 Lok Sabha polls – News Analysis

In the first instance of a party getting majority on its own in 30 years, BJP won 282 seats in Lok Sabha in 2014. The BJP-led NDA had won 336 seats out of 543.

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Congress workers Karnataka civic polls

The results in the Hindi heartland states of Madhya Pradesh, Chhattisgarh and Rajasthan came as a major shock for the Bharatiya Janata Party (BJP), which has won all the major states barring Delhi, Bihar, Punjab and Karnataka in elections held after the sweeping 2014 Lok Sabha victory.

The BJP was routed in Chhattisgarh and defeated in Rajasthan and Madhya Pradesh in closely-fought contests. The party mostly banked on the image of Chief Ministers Raman Singh, Shivraj Singh Chouhan to lift the party’s fortunes.

In Rajasthan, where opinion polls had written off the BJP, Prime Minister Narendra Modi and party chief Amit Shah put in extra efforts, besides banking on the hardcore Hindutva image of Uttar Pradesh Chief Minister Yogi Adityanath, to take the battle to the Congress, but still lost.

The BJP, however, managed to open its account in Mizoram, where the Mizo National Front (MNF) ousted the ruling Congress partty, but saw its numbers fall from five to one in Telangana, where the Telangana Rashtra Samithi swept the polls.

The results of these five states, which were dubbed the semifinals ahead of the next general elections in April-May 2019, could be a factor in the battle between the BJP-led National Democratic Alliance (NDA) and the Congress-led opposition.

The major issues raked up by Congress, specially the farm loan waiver amid an agrarian crisis across the country, employment and anger among upper caste, seems to have worked in its favour and could haunt the ruling dispensation if remedial measures are not taken.

The BJP is not ready, however, to accept the defeat as a referendum on the Modi government.

Union Finance Minister Arun Jaitley said issues in state elections are entirely different. The BJP won Madhya Pradesh, Rajasthan and Chhattisgarh in 2003 but lost the Lok sabha elections next year, he pointed out.

The general elections in 2019, he added, would be fought around Modi’s performance, with people voting for a tried and tested leadership instead of a non-ideological opposition coalition which is bound to collapse sooner than later.

The Congress, which had a disastrous performance in the 2014 Lok Sabha elections and suffered successive defeats in various Assembly elections, smiled for the first time after defeating the BJP in a direct contest in the three crucial states in north India.

Party president Rahul Gandhi, who campaigned vigorously, said the Assembly election results were a referendum on Prime Minister Narendra Modi’s non-performance on issues of unemployment, agrarian distress, corruption and negating the ill-effects of demonetisation.

Out of total 678 Assembly seats in the five states in the current round of elections, the Congress has won close to 300 seats while the BJP managed to win over 200 seats. In the 2013 Assembly polls, the BJP had won 377 seats in Madhya Pradesh, Rajasthan, Chhattisgarh and Mizoram while the Congress had won only 122 seats in these states.

In the 2014 Lok Sabha polls, the BJP had won 62 out of total 83 Lok Sabha constituencies of Madhya Pradesh, Rajasthan, Chhattisgarh, Telangana and Mizoram. Now the three Hindi heartland states will be ruled by Congress and the its impact would definitely be felt in the 2019 Lok Sabha polls.

In the first instance of a party getting majority on its own in 30 years, BJP won 282 seats in Lok Sabha in 2014. The BJP-led NDA had won 336 seats out of 543.

Its allies include the Shiv Sena, which has been on the war path for a while. Similarly, N. Chandrababu Naidu’s Telugu Desam Party (TDP) and Upendra Kushwaha’s Rashtriya Lok Samata Party (RLSP) have walked out of the NDA.

Since 2014, BJP has managed to retain just six Lok Sabha seats in by-polls. It won Lakhimpur in Assam, Shahdol in Madhya Pradesh, Beed and Palghar in Maharashtra, Vadodara in Gujarat and Shimoga in Karnataka.

In the last four years, the party has lost Lok Sabha by polls in Ratlam in Madhya Pradesh, Gurdaspur in Punjab, Alwar and Ajmer in Rajasthan, Kairana, Phulpur and Gorakhpur in Uttar Pradesh, Bhandara-Gondiya in Maharashtra and Bellary and Mandya constituencies in Karnataka.

The BJP, however, maintained the verdict was a mandate against the state governments and not against the Modi government.

“The results in five states clearly show there is no uniform trend across the country and local factors determined the outcome in each state. This is evident from the fact that even Congress suffered massive defeats in Mizoram and Telangana.

“Despite 15 years of anti-incumbancy in Madhya Pradesh, the BJP has put up a fight in Madhya Pradesh and has a major comeback in Rajasthan. The BJP’s and Congress’ vote share in both the states in Mandhya Pradesh and Rajasthan is almost tied which clearly show that the BJP has the potential to comeback with big victories in 2019 Lok Sabha polls,” BJP Spokeperson G.V. L. Narsimha Rao told IANS.

He also said whenever Congress has tied up with a regional party, it cost them votes.

(Brajendra Nath Singh can be contacted at [email protected])

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Verdict in Hindi heartland states gives Congress hope for 2019 – News Analysis

The outcome is expected to energize the Congress rank and file who have been largely starved of election victories since its 2014 debacle. The latest victory is the first time since 2014 when the Congress has defeated the BJP in a straight contest.

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Rahul Gandhi

The Congress recorded its best-ever performance against the BJP since the disastrous 2014 Lok Sabha polls capturing power in the three Hindi heartland states and reviving its hopes in the next general elections. But the outcome has also sent signals that defeating the BJP nationally may not be an easy task.

Except for Chhattisgarh, where the party won a two-thirds majority, the results were not as resounding as the Congress would have liked, especially in Madhya Pradesh and Rajasthan where it failed to cross the half-way mark on its own by just two seats.

It lost power in Mizoram, the only northeastern state it had, and was routed in Telangana where its decision to go with the Telugu Desam Party evidently boomeranged.

The verdict, with the Congress poised to form governments in Chhattisgarh, Rajasthan and Madhya Pradesh, coincided with the first anniversary of Rahul Gandhi’s elevation as party chief, raising his stature as a leader and enhancing his image as a serious politician.

The outcome is expected to energize the Congress rank and file who have been largely starved of election victories since its 2014 debacle. The latest victory is the first time since 2014 when the Congress has defeated the BJP in a straight contest.

Questions remain if the verdict is strong enough to dent the image of Prime Minister Narendra Modi as an effective campaigner and communicator but it is likely to give some confidence to Congress workers that the party has a chance to turn the tables if there is a “Modi versus Rahul” contest in 2019.

The outcome will strengthen the position of the Congress in the emerging alliance of opposition parties to take on the BJP-led alliance in 2019 and increase worries of Modi and BJP chief Amit Shah in the Hindi heartland states where the BJP won most seats in the 2014 Lok Sabha battle.

The Congress has performed well as a challenger but has found it hard to defend its incumbent governments.

The results showed that the Congress can build its campaign around the issues of agrarian distress, unemployment, demonetization, corruption, security of women, Goods and Services Tax (GST), autonomy of institutions and “misuse” of investigative agencies.

The outcome has given the opportunity to Congress to pose a challenge to the BJP though it would be an uphill challenge to implement its promise of farm loan waivers. It had attacked the BJP governments in the states and the Centre on the issue.

Rahul Gandhi ran an energetic campaign since the announcement of polls in the five states in October and held 62 rallies, targeting Modi in every meeting.

He addressed 19 public meetings and held one roadshow in Chhattisgarh, 25 public meetings and four road shows in Madhya Pradesh, 19 public meetings and two roadshows in Rajasthan, 17 public meetings in Telangana and two rallies in Mizoram.

Gandhi was able to effect an organisational coherence in the poll-bound states, overcoming one of the party’s weaknesses.

He made organisational changes and put Kamal Nath as party chief in faction-ridden Madhya Pradesh. The decision was made in April, barely seven months before the Assembly polls leaving the new state chief little time to build his campaign.

The results are expected to lead to questions in the Congress if its decision not to project a Chief Ministerial candidate was the best strategy.

The BJP’s strong performance in Rajasthan and Madhya Pradesh despite anti-incumbency apparently shows that the 2019 election will need a much more sustained effort by the Congress to dislodge the Modi government.

Though the Congress won more seats than BJP in both these states, the two parties have nearly the same vote share.

The victory of TRS in Telangana has boosted the profile of state Chief Minister K. Chanrasekhar Rao who has pledged to form a third front that does not include BJP or Congress. This could counter the efforts of his rival, TDP leader and Andhra Pradesh Chief Minister N. Chandrababu Naidu, to bring opposition parties, including Congress, on one platform.

The Congress could not win a full majority in Rajasthan, falling short by two seats in a cyclical rotation in which both BJP and Congress have been forming governments alternately in the last 20 years.

In Madhya Pradesh, where BJP has been in power for the past 15 years, it could not secure a thumping majority like it did in the neighbouring Chhattisgarh and is all set to form a government with the support of BSP and SP.

In Chhattisgarh, it won after parting ways with former Chief Minister Ajit Jogi who floated his own party.

Gandhi has indicated that the Congress will continue to build its campaign in the Lok Sabha elections around the issues it raised during the Assembly polls. He has also said that the opposition parties will unitedly fight the polls.

With the opposition unlikely to project a Prime Ministerial candidate, the BJP is likely to play this to its advantage in the Lok Sabha elections by making it “Modi versus who” battle.

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Next, a presidential contest between Modi and Rahul – Comment

But the ploy, which included a pledge by the RSS to revive the Ramjanmabhoomi movement of 1992-93 which led to the Babri masjid’s demolition, failed to check the Congress’s revival and the signs of erosion of the BJP’s base of support.

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Rahul Gandhi

By setting in motion the process of undoing the pronounced pro-Bharatiya Janata Party (BJP) tilt in Indian politics when the party secured a majority in the Lok Sabha and ruled at one time over 19 states, the voters of the three heartland states of Rajasthan, Madhya Pradesh and Chhattisgarh have sent out two unambiguous messages.

One is the old warning about pride preceding a fall. The hyperbole of the BJP president Amit Shah’s declaration that his party will rule for 50 years has been shown to be so much hot air as has been the observation of a loyal mandarin, national security adviser Ajit Doval, that the country needs a strong, stable government – obviously meaning Narendra Modi’s rule – for the next 10 years.

It was in keeping with these grandiose assertions that the BJP built the world’s tallest statue – of Congress stalwart Vallabhbhai Patel, whom the BJP can be said to have misappropriated from the Congress – and announced the plans for an almost equally large statue of Lord Ram.

But none of these achievements and claims have saved it from a 0-3 drubbing at the hustings. The lesson from this electoral whitewash of the three BJP-ruled states is that no mercy can be expected from the electorate for the Modi government’s failure to keep the promise of vikas or development. It is obvious that economic stagnation and agricultural distress have spelt doom for the BJP.

The second message from the results is that Rahul Gandhi has succeeded in exposing the falsity of the charges that had been levelled against him ever since he came into politics. Yet, neither being derisively called “Pappu” or an adolescent kid, or of being a “pathological liar”, to quote Arun Jaitley, had any effect on his emergence as a capable leader, who took the lead in addressing the media after the recent opposition conclave while veterans like Sharad Pawar and H.D. Deve Gowda remained in the background.

It is now obvious after the Congress’s success in Rajasthan, Madhya Pradesh and Chhattisgarh that Rahul Gandhi will increasingly be in the forefront of the mahagathbandhan (grand alliance) efforts, especially when the other major convener of the alliance, Chandrababu Naidu, has suffered a setback because of his Telugu Desam Party’s poor showing in the Telangana elections.

The taking of centre-stage by the Congress president is likely to turn the 2019 general election into a presidential-style contest between him and Narendra Modi. Up until last Tuesday, the BJP would have looked forward to such an unequal fight, in its view, between Pappu and the party’s hero with his macho image.

But no longer. Now, it will be a confrontation between the youthful standard-bearer of a rejuvenated party and the aging leader of an organisation which is seen to be on a slippery slope because of failures on several fronts – economic, administrative as the disarray in the Central Bureau of Investigation and the Reserve Bank of India shows, and an “inability” – whether inadvertently or by design – to rein in the Hindutva storm-troopers.

It is possible that these Hindu militants were let loose with one of the BJP’s chief propagandists, UP Chief Minister Yogi Adityanah, instigating them with his venomous Ali-Bajrang Bali communal polasization because the party had been sensing for quite some time – presumably after its setbacks in Karnataka – that it was losing ground.

Seeing the receding mirage of the Hindu rashtra, which was thought by the saffron brotherhood to be within reach because of the BJP’s political clout, the Rashtriya Swayamsevak Sangh (RSS), purportedly a “cultural” organization, jumped into the fray with its demand for the immediate enactment of a law for constructing the Ram temple.

Its calculation apparently was that the law would shore up the BJP’s sagging political fortunes by mobilising the Hindus behind the party. If BJP MP Subramanian Swamy is to be believed, it is the drive for Hindutva which enthuses the saffron cadres and brings in votes for the party, and not vikas.

But the ploy, which included a pledge by the RSS to revive the Ramjanmabhoomi movement of 1992-93 which led to the Babri masjid’s demolition, failed to check the Congress’s revival and the signs of erosion of the BJP’s base of support.

Now that a presidential-style contest is on the cards, it will be advisable for Rahul Gandhi to live up to the lesson which he says he has learnt from Modi’s mistake – that of a lack of humility because “arrogance is fatal for a politician”.

While the Prime Minister has tweeted his acceptance of the people’s “mandate”, some of the spokespersons of the BJP and the RSS have been describing the Congress’s success in Rajasthan and Madhya Pradesh as “accidental” because of the marginal difference in the vote share of the two parties.

In Rajasthan, the Congress received 39.3 per cent of the votes while the BJP got 38.8. In Madhya Pradesh, the BJP’s percentage was higher at 41 compared to the Congress’s 40.9 per cent although the Congress won a larger number of seats.

The BJP is evidently unwilling to accept a result which has upended its dream of ushering in a Congress-mukt (free) India.

(Amulya Ganguli is a political analyst. The views expressed are personal. He can be reached at [email protected])

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