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Friday, July 11, 2025 7:15 PM

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PM Modi Chairs Day-Long Conclave with NDA CMs, Focuses on Good Governance and Development Synergies

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Prime Minister Narendra Modi chaired a comprehensive conclave in New Delhi, bringing together Chief Ministers and Deputy Chief Ministers from all 20 National Democratic Alliance (NDA)-governed states. The high-level meeting centred on strategies to accelerate development and ensure the effective delivery of governance through the “double-engine” model. Addressing the gathering, the Prime Minister stressed the importance of enhancing coordination and synergy across sectors such as healthcare, sanitation, agriculture, youth empowerment, and technology. He also encouraged states to intensify their efforts in delivering public services and creating impactful governance outcomes. In a post on social media, PM Modi highlighted the extensive discussions held during the conclave, which included sharing of successful models and initiatives from various states. These ranged from water conservation and grievance redressal mechanisms to administrative reforms, women empowerment, sports, and education. Organised by the BJP’s Good Governance Department, the conclave saw participation from 20 Chief Ministers and 18 Deputy Chief Ministers. Senior BJP leaders including Party President JP Nadda, Home Minister Amit Shah, and Defence Minister Rajnath Singh also took part in the day-long discussions. Speaking to the media after the meeting, BJP President JP Nadda stated that two key resolutions were adopted. The first praised the Indian armed forces for their bravery under Operation Sindoor, which targeted terror camps across the border. The second resolution reaffirmed the party’s stance on caste-based policies, clarifying that the BJP prioritises social integration and mainstreaming of backward communities without engaging in caste-based politics. The session also featured detailed presentations by the states showcasing their governance achievements. Additionally, leaders discussed preparations for major upcoming milestones, including the NDA government’s first anniversary on June 9, the 10th International Day of Yoga, and the 50th year since the declaration of the Emergency in 1975. The conclave reinforced the NDA’s collective commitment to good governance, innovation, and inclusive development across the nation. Source: newsonair  

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Supreme Court Directs Bengal Govt to Pay 25% of Outstanding DA to State Employees

In a significant ruling, the Supreme Court has mandated the West Bengal government to release 25% of the pending dearness allowance (DA) dues owed to its employees. The directive, issued by a bench comprising Justices Sanjay Karol and Sandeep Mehta, gives the state three months to comply. The case will be reviewed again in August. This development marks a considerable setback for the Mamata Banerjee-led administration and a moment of triumph for state employees who have long been demanding DA parity with their central government counterparts. Reacting to the verdict, BJP leader Amit Malviya stated on social media that the ruling is a landmark victory following a protracted legal battle and nearly 17 adjournments initiated by the state government to stall the proceedings. The conflict began when a group of state government employees approached the Calcutta High Court, seeking DA benefits equivalent to those provided by the Centre. In May 2022, the high court ruled in favor of the employees, directing the Bengal government to align its DA rates with those of the Centre. However, the state challenged the verdict in the Supreme Court in November 2022. Although the West Bengal government has made marginal increases in DA over time, it has not managed to bridge the 37% gap compared to the Centre. Currently, central government employees receive 55% DA, while their West Bengal counterparts receive only 18%—a figure that includes the latest 4% hike effective from April 1, 2025. The disparity has led to widespread dissatisfaction among state employees. The Supreme Court’s latest order provides partial relief and sets the stage for further developments in the ongoing battle for DA parity. Source: NDTV Photo Credit: NDTV

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Rajasthan BJP Heads to Gujarat for Governance Training Amid Opposition Criticism

In a bold administrative move, the Bharatiya Janata Party (BJP) has launched a comprehensive campaign to strengthen coordination between the government and party organisation in Rajasthan, aiming to instill the principles of good governance and long-term public trust. From May 5 to 7, the entire Rajasthan BJP leadership — including Chief Minister Bhajan Lal Sharma, both Deputy CMs, cabinet ministers, 115 MLAs, MPs, and organisational heads — has converged at Kevadia, Gujarat, for a three-day “Good Governance Training Camp” near the Statue of Unity. The event is designed to impart lessons from the “Gujarat Model” of governance, with sessions covering administrative efficiency, public engagement, grassroots feedback, and strategic planning for upcoming local body elections. Key national BJP leaders like Union Home Minister Amit Shah, Party President J.P. Nadda, and Organisation General Secretary B.L. Santhosh are guiding the training sessions. The camp reflects BJP’s ambition to replicate Gujarat’s electoral and governance success in Rajasthan, a state known for frequent power shifts. However, the move has sparked sharp reactions from the Opposition. Leader of Opposition Tika Ram Jully criticised the decision, calling it “an admission of inexperience” and questioned the timing, citing Rajasthan’s ongoing summer crises in electricity, water, and healthcare. Former CM Ashok Gehlot also lashed out, suggesting that the government’s absence during a critical time exposes misplaced priorities. “Training can happen in Rajasthan too. Why Gujarat?” he asked, further hinting at external control over the state leadership. Despite the backlash, BJP defends the camp as a strategic investment for stable, people-focused governance. All participants are staying in Tent City-2 near the Narmada River, symbolising unity and institutional strength.

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Bengaluru Civic Polls Likely Delayed by a Year Amid Implementation of New Governance Act

The long-awaited elections to Bengaluru’s civic agency could be delayed by up to a year, following the implementation of the new Greater Bengaluru Governance (GBG) Act. The law, which replaces the existing BBMP Act, was recently approved by Governor Thaawar Chand Gehlot. However, the transition involves several procedural steps that the government must complete before polls can be held. Central to the GBG Act is the formation of a Greater Bengaluru Authority (GBA), which requires defining an expanded Bengaluru area beyond the current 786 sq km. The government also intends to restructure the city into multiple corporations—potentially up to seven—requiring new ward boundaries and reservation patterns to be drawn. Urban Development Department officials estimate that this entire process may take at least a year. However, Transport Minister Ramalinga Reddy has stated that the government aims to conduct elections by December. “We will try to complete all formalities expeditiously and consult elected representatives from all parties for their suggestions,” he said. The delay has prompted sharp criticism from opposition leaders and civil society groups. BJP leader R Ashoka accused the government of using the GBG Act as a pretext to stall elections further, pointing out that BBMP polls have already been delayed for nearly five years. CN Ashwath Narayan echoed the sentiment, blaming the current government for failing to hold timely elections after taking office in May 2023. Prakash Belawadi, convener of Bengaluru Town Hall, noted that elections could still be conducted under the BBMP Act since the appointed day under the GBG Act has not yet been notified. Civil groups are considering legal action to push for elections under the existing law. Meanwhile, the Karnataka State Election Commission plans to approach the High Court to expedite delayed elections in other cities like Mysuru, Tumakuru, and Mangaluru.

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Uttar Pradesh Government to Present Supplementary Budget of Rs 30,000 Crore in Assembly

The Yogi Adityanath-led Bharatiya Janata Party (BJP) government will present a supplementary budget of approximately Rs 30,000 crore in the Uttar Pradesh Legislative Assembly on Tuesday. This presentation will take place on the second day of the monsoon session of the UP Vidhan Sabha, which will also include discussions on various bills presented in the House. The supplementary budget is expected to gain cabinet approval and will allocate funds for several key projects and initiatives, including the Kumbh Mela, the purchase of buses, industrial projects, and the construction of new bridges. In addition to the budget presentation, the Uttar Pradesh government introduced the UP Prohibition of Unlawful Religious Conversion (Amendment) Bill in the Assembly on Monday. This bill proposes life imprisonment for offenses related to ‘love jihad’ and aims to double the punishments for certain crimes listed under it. Samajwadi Party leader Fakhrul Hasan Chand criticized the amendments, accusing the BJP of engaging in negative politics instead of addressing issues like unemployment and paper leaks. In a self-made video, Chand stated, “The BJP government, which has brought the ordinance on Love Jihad, already has a law on it. If someone traps someone in his/her love trap with some motive, then there is a law for it, but the BJP only wants to do negative politics.” During the Assembly session, Uttar Pradesh Chief Minister Yogi Adityanath introduced four new ministers to his cabinet: OP Rajbhar, Anil Kumar, Dara Singh Chauhan, and Sunil Sharma. “These four cabinet ministers were part of this Assembly. I introduce them as part of the Cabinet in this House,” Adityanath said. Additionally, Uttar Pradesh Assembly Speaker Satish Mahana welcomed Samajwadi Party leader Mata Prasad Pandey, who has been appointed as the Leader of the Opposition in the House.

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BJP-Led Central Government Denies Special Category Status for Bihar

The BJP-led central government has rejected the demand for special category status for Bihar, a request made by its ally JD(U). This decision will also affect a similar demand from another ally, the TDP, for Andhra Pradesh. Junior Finance Minister Pankaj Chaudhary communicated the government’s stance in a written reply to JD(U) MP Rampreet Mandal. Chaudhary explained that the term “special category” was a concept used by the now-defunct Planning Commission, and states have since benefited from special packages instead. The rejection of special category status, though significant due to the importance of JD(U) and TDP’s Lok Sabha numbers for the Modi government, was anticipated and is based on the 14th Finance Commission’s recommendation. The Commission had suggested ending the special category status scheme, which provided incentives like tax concessions to industries in backward states, in favor of increasing the devolution of central funds to states from 32% to 42%. Both TDP and JD(U) seem to have considered this outcome in their political strategies. Andhra Pradesh Chief Minister and TDP chief N. Chandrababu Naidu has shifted his focus towards securing central assistance for specific projects such as the development of Amaravati as a new capital and the Polavaram dam project. At a recent all-party meeting, TDP representative Lavu Sri Krishna Devarayalu did not raise the issue of special category status, which reportedly annoyed the Congress. Meanwhile, JD(U) working president and Rajya Sabha MP Sanjay Jha reiterated Bihar CM Nitish Kumar’s demand for special category status during the same meeting but also showed understanding for the central government’s stance, indicating the party might settle for central assistance in managing floods. The decision sparked political reactions, with Lalu Prasad’s RJD taunting JD(U). “Nitish Kumar assured special status for Bihar. Since the Centre has refused, he should resign immediately,” said Lalu. In response, Union Minister Giriraj Singh pointed out that Lalu remained silent when the UPA denied special category status to Bihar, suggesting that the current criticism was hypocritical. Pankaj Chaudhary, in his written reply, explained that special category status was previously granted by the National Development Council (NDC) to states with certain characteristics, such as hilly terrain, low population density, significant tribal populations, strategic border locations, economic and infrastructural backwardness, and non-viable state finances. The decision to grant special status was based on a thorough consideration of these factors and the unique situation of each state. LJP (RV) MP Shambhavi Choudhary added that while the term “special status” ceased to exist after the formation of Niti Aayog, states have continued to receive special packages to accelerate development.

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Haryana Increases Reservation for OBCs in Government Jobs

In a significant move benefiting the Other Backward Classes (OBCs), the Haryana Government has announced an increase in the reservation for OBCs in government jobs and a raise in the upper income limit for the creamy layer to ₹8 lakh per year. Chief Minister Nayab Singh Saini made these announcements on Sunday, marking a notable shift in the state’s approach to social equity and inclusion. The reservation for backward classes has been increased from 15 percent to 27 percent in Group-A and Group-B government posts. This decision aims to provide greater opportunities and representation for OBCs in higher-level government positions. The term “creamy layer” refers to members of a backward class who are relatively advanced socially, economically, and educationally. By raising the upper income limit for this group, the Haryana Government aims to broaden the eligibility for reservations, ensuring that more individuals from OBCs can benefit from government job opportunities. Additionally, the government has committed to addressing the backlog of jobs for Backward Classes A and B on a priority basis through a special recruitment campaign. This initiative is expected to expedite the employment process and reduce the unemployment rate among these communities. In the context of the upcoming Haryana Assembly elections, Chief Minister Saini expressed confidence in his party’s prospects. He highlighted the government’s developmental works and initiatives aimed at providing employment and fostering growth in Haryana. He asserted that the BJP, under the leadership of Prime Minister Modi and with the support of election in-charges, is poised to win the elections and form the government for a third consecutive term. Taking a dig at the Congress party and the Hooda family, Saini criticized their approach as dynastic, contrasting it with the BJP’s focus on governance and public welfare. He emphasized the government’s commitment to the interests of the poor, farmers, and women, reiterating that the BJP is a government of the people. The Haryana Assembly elections will be held later this year, alongside elections in Jharkhand, Maharashtra, and Jammu and Kashmir.

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India Considering Lowering Personal Tax Rates to Boost Consumption

The Indian government is contemplating lowering personal tax rates for certain categories of individuals in the upcoming Budget 2024, potentially boosting consumption in Asia’s third-largest economy. This plan might be announced in July when Prime Minister Narendra Modi’s government presents its first federal budget after the Bharatiya Janata Party (BJP) failed to secure a majority on its own. A post-poll survey revealed voter concerns about inflation, unemployment, and declining incomes. Despite the Indian economy growing at an impressive 8.2% in 2023-24, consumption only grew at half that rate. Prime Minister Modi, while claiming to form the National Democratic Alliance government, emphasized focusing on raising middle-class savings and improving their quality of life. A reduction in personal tax could enhance consumption and increase middle-class savings, according to sources, who spoke anonymously due to the confidentiality of budget discussions. The finance ministry did not immediately respond to requests for comment. The tax relief may target individuals earning over Rs 15 lakh annually, with specifics yet to be determined. The changes might affect a tax scheme introduced in 2020, where income up to Rs 15 lakh is taxed at 5%-20%, and earnings over Rs 15 lakh are taxed at 30%. The government may also consider lowering rates for annual incomes of Rs 10 lakh and discussing a new threshold for the highest tax rate of 30%. Any loss of tax revenue from these cuts could be partially offset by increased consumption among higher income earners. The federal government aims for a fiscal deficit of 5.1% of GDP by March 2025. Strong tax collections and a substantial dividend from the central bank will provide the government flexibility in planning the new budget.

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Congress Reaches Out to Naidu, Nitish as NDA Attempts to Form Alliance Government

In a strategic move to counter the Bharatiya Janata Party (BJP) from forming a coalition government, the Congress party has reached out to Telugu Desam Party (TDP) chief Chandrababu Naidu and Janata Dal United (JDU) chief Nitish Kumar. Sources indicate that the outreach has been conducted through multiple channels, including Telangana Chief Minister Revanth Reddy, a former TDP member. While immediate action from the TDP or JDU is not anticipated, Congress views maintaining communication lines as crucial, given the potential for these NDA allies to reconsider their positions in the coming months. A Congress leader mentioned that if a move happens, Nitish and Naidu would likely act together as a ‘package’ within a few months. This development comes as the BJP, under Prime Minister Narendra Modi’s leadership, faces an unexpected challenge. With the BJP securing 240 seats, significantly short of their anticipated 400, Modi now navigates the complex path of coalition politics for the first time in his 23-year political career. Political analysts question Modi’s ability to manage allies like Nitish and Naidu, both of whom have previously exited the BJP-led National Democratic Alliance (NDA). Sources suggest that Naidu may leverage this opportunity to demand a special financial package for Andhra Pradesh. Meanwhile, the INDIA bloc, a coalition of opposition parties led by Congress, plans to engage with Nitish and Naidu either immediately or within the next six months, potentially leading to a significant political shift. Modi’s post-election speech highlighted the BJP’s historic win in Odisha and notable gains in Telangana. The NDA also made inroads into Andhra Pradesh with the help of its allies TDP and Jana Sena. The BJP celebrated opening its account in Kerala for the first time with actor-turned-politician Suresh Gopi’s win in Thrissur. However, setbacks in key states like Uttar Pradesh, West Bengal, and Rajasthan loom large. In Uttar Pradesh, the BJP’s dominance waned as the Samajwadi Party claimed 37 out of 80 seats, a stark contrast to the BJP’s previous tally. West Bengal also delivered a blow, with the Trinamool Congress retaining 29 out of 42 seats, reducing BJP’s count to 12 from 18. Similarly, in Rajasthan and Karnataka, Congress made significant inroads, capturing several seats from the BJP.

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Weakened Modi Government Faces Challenges in Fiscal Consolidation

Can a weakened Narendra Modi government continue its work of narrowing the fiscal gap, which it has been able to do in recent years? Economists say it is doable, but perhaps not at the pace the government would have preferred. Following exit polls, analysts were optimistic about the Indian economy’s fiscal deficit coming down to its target of 4.5 percent by FY26. This optimism was based on the prediction of a landslide victory for the BJP-led NDA. However, the actual election results were different: the NDA has enough numbers to form a government at the Centre, but the BJP on its own falls short of the majority of 272 seats needed in the 543-seat Lok Sabha. The narrower margin of victory for Indian Prime Minister Narendra Modi’s alliance in elections will forestall reforms that could have potentially facilitated aggressive fiscal consolidation, an analyst at Moody’s Ratings told Reuters in an interview. “If the BJP, like it did in 2014 and 2019, had won over 273 seats on its own, it could have pushed on with curbing the gap at a much more aggressive speed,” said Christian de Guzman, senior vice president of the sovereign risk group at Moody’s. “It looks like the prospects for even more aggressive consolidation are not as bright as they were before the election results. However, I still think that the prospects for consolidation will remain intact, and they will retain a level of fiscal discipline.” India’s Fiscal Deficit Plans India aims to narrow its fiscal deficit to 4.5 percent of GDP by the end of FY26, down from the 5.1 percent projected for the current year ending in March 2025. Some reports indicate that India is now likely to bring down its FY25 fiscal deficit target to 4.9 percent. The smaller mandate for Modi raises the risk of more populist spending to consolidate political support, Guzman said. Although the BJP’s manifesto and the Interim Budget announced by Finance Minister Nirmala Sitharaman did not hint at much populist spending, the full budget due in July will be more telling. This budget will account for the government’s plans, including the Reserve Bank of India’s record Rs 2.11 lakh crore surplus transfer. The government could use this surplus to further consolidate the fiscal position or to garner political support, Guzman added. “A shaky political outcome perhaps suggests higher odds for the latter.” Challenges to Ambitious Reforms Fitch Ratings noted that the weakened majority for Modi’s alliance could pose challenges for the more ambitious elements of the government’s reform agenda. Guzman acknowledged India’s high growth and robust economic prospects over the medium-term are already factored into their ratings, as is the progress made on macroeconomic and financial stability. However, to upgrade India’s sovereign outlook or rating, Moody’s would need to see a “much more material improvement on the fiscal side,” Guzman explained. This includes a significant reduction in government debt and an improvement in debt affordability, such as a reduction in the proportion of revenue accounted for by interest payments or debt servicing.

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