How Modi sarkar responded to Rahul Gandhi on 5 key issues in pre-poll budget

When Finance Minister Piyush Goyal presented interim budget in the Lok Sabha ahead of the Lok Sabha election today, many of his proposals were a direct political response to electoral promises that Congress president Rahul Gandhi had made ahead of the annual budget exercise. In political terms, with just around 100 days to go for the general election, the Modi government countered the substance of many of Rahul Gandhi’s promises with its own proposals.

Stretching across farmers, unemployed youth, minimum income guarantee scheme, demonetisation and the debate on Goods and Services Tax (GST), here is a quick runthrough comparing what Rahul Gandhi had said on each issue and what Piyush Goyal’s budget speech promised.

Farmers

Rahul Gandhi: The Congress president has been raking up agrarian distress and alleging that the Modi government is insensitive to the concerns of the farmers. He promised farm loan waivers ahead of the Punjab, Karnataka, Madhya Pradesh, Rajasthan and Chhattisgarh assembly elections.

His farm loan waiver promise contributed to Congress coming back to power in the three Hindi heartland states of Madhya Pradesh, Rajasthan and Chhattisgarh.

Piyush Goyal: The finance minister announced a number of sops for the farmers.

Under Pradhan Mantri Kisan Samman Nidhi, Rs 6,000 per year has been announced for each farmer in three instalments to be transferred directly to farmers' bank accounts. This is for farmers with less than 2 hectares land holding. The budget has allocated Rs 75,000 crore to fulfill this promise.

To provide assured income support for small and marginal farmers, Pradhan Mantri Kisan Samman Nidhi has been approved.

Increased allocation has been made for Rashtriya Gokul Mission to 750 crore in the current year.

He said that for welfare of farmers and for doubling their income, a historic decision has been taken to increase minimum support price (MSP) by 1.5 times the production cost for all 22 crops.

Two per cent interest subvention announced for farmers pursuing animal husbandry and fisheries.

Minimum Income Guarantee

Rahul Gandhi: In a major gambit covering the poor and the unemployed, he promised implementation of minimum income guarantee programme if the Congress comes to power this year.

In a rally in Cochin on January 29, Rahul Gandhi accused the Modi government of crony capitalism and alleged that 15 rich people had been given maximum income guarantees by it. He said the Congress government would give every single poor Indian direct money in their bank account.

Piyush Goyal: He announced “mega pension yojana”, namely Pradhan Mantri Shram Yogi Mandhan, to provide assured monthly pension of Rs 3,000 per month, with contribution of Rs 100 per month, for workers in unorganised sector after 60 years of age.

He also announced increase in gratuity limit from Rs 10 lakh to Rs 30 lakh.

Jobs

Rahul Gandhi: Besides agrarian distress, the Congress president has been raising the issue of joblessness among the youth. He has accused the Modi government failing in its promise to provide 2 crore jobs every year. The Congress has also questioned the newly revised GDP figures.

Piyush Goyal: In a counter to Rahul Gandhi’s charges, the finance minister said high growth and formalisation of economy has resulted in increased Employees' Provident Fund Organisation (EPFO) membership by 2 crore in the last two years.

He said 50 per cent of the GDP comes from sweat and toil of 42 crore workers in the unorganised sector.

“India's youth have turned job creators from job seekers, India has become the second largest hub for startups… 75 per cent of woman beneficiaries under PM Mudra Yojana, 26 weeks of maternity leave and Pradhan Mantri Matritva Yojana, are all empowering women,” he said.

He declared that Rs 1 crore loan can now be obtained within 59 minutes. He also said nine priority areas have been identified and National Artificial Intelligence portal would be developed soon.

GST

Rahul Gandhi: He has been attacking the Modi government over implementation of GST, calling it the ‘Gabbar Singh Tax’. He has been alleging that the BJP-led NDA government has been forcibly taking out money from businessmen, merchants and traders.

Piyush Goyal: He said GST has been continuously reduced, resulting in relief of Rs 80,000 crore to the consumers. He said most items of daily use for poor and middle class are now in the 0-5 per cent tax bracket.

He announced that GST collections in January 2019 have crossed Rs 1 lakh crore.

Demonetisation

Rahul Gandhi: He has been on the offensive over the November 8, 2016 announcement made at 8 pm by Prime Minister Narendra Modi. He has alleged that the move was responsible for snatching away jobs from people.

He has also been alleging that while the poor had to stand in queues to exchange their currency notes, the rich and the powerful got money through the backdoor. “Did you see even a single rich person standing in the queue?” he has said on several occasions in the past.

Piyush Goyal: The finance minister claimed that there has been an increase of 18 per cent in direct tax collections in 2017-18, 1.06 crore people have been included in tax base and more than 1 crore citizens filed Income tax (IT) returns for the first time after demonetisation.

He said 14 per cent growth in state tax collections was guaranteed and underwritten by the government.

“We are poised to become a 5 trillion dollar economy in the next five years. We aspire to become a 10 trillion dollar economy in the next eight years.”

Piyush Goyal said the Modi government was committed to eliminating the ills of black money. “Anti-blackmoney measures taken have brought undisclosed income of about Rs 1.30 lakh crore to the surface and 3.38 lakh shell companies have been deregistered,” he said.

Overall, the budget sets the tone for the political battle ahead of the 2019 Lok Sabha elections.