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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.

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.

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.

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.

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.

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.

Andhra Pradesh Assembly Election Results 2024: Key Insights and Analysis

The counting of votes for the Assembly elections in Andhra Pradesh and Odisha, along with the counting of the Lok Sabha Elections 2024, is taking place today (June 4). The Assembly elections in Andhra Pradesh were held on May 13. There are 175 Assembly constituencies in the Andhra Pradesh Assembly with 29 seats reserved for Scheduled Castes (SCs) and another 7 for Scheduled Tribes (STs). The term of the present Andhra Pradesh Assembly is from June 12, 2019 to June 11, 2024. The Telugu Desam Party (TDP) of Chandrababu Naidu and the Yuvajana Sramika Rythu Congress Party (YSRCP) of Chief Minister Jagan Mohan Reddy are the two main political parties in Andhra Pradesh. Pawan Kalyan-led Jana Sena Party (JSP), the Bharatiya Janata Party (BJP), and the Congress are the other important parties in the state.Key candidates in Andhra Pradesh include Andhra Pradesh Chief Minister YS Jagan Mohan Reddy (YSRCP), N Chandrababu Naidu (TDP), Pawan Kalyan (JSP), Killi Kruparani (Congress), Dharmana Prasada Rao (YSRCP), and others.Key constituencies in Andhra Pradesh include Pulivendula, Kuppam, Pithapuram, Mangalagiri, Hindupur, Vijayawada West, Narasannapeta, Srikakulam, Tekkali, Gajuwaka, Undi, Gannavaram (Krishna), Atmakur, Proddatur, and Jammalamadugu. Andhra Pradesh recorded 80.66 per cent of voting in the Assembly Election 2024, which was 80.39 per cent in the Assembly Election 2019.In the 2019 Andhra Pradesh Assembly Election, the YSRCP emerged victorious with a massive 151 seats and YS Jagan Mohan Reddy became the Chief Minister. The incumbent TDP managed to win just 23 seats. The JSP won a single seat while neither the BJP nor the Congress couldn’t open their account. To form the government in Andhra Pradesh, every party or coalition must reach the majority mark in the Legislative Assembly. The majority mark in each state Assembly depends upon the total number of seats in the Legislative Assembly of a particular state. The majority mark in any state is half of the number of total Assembly seats plus one more seat. The Andhra Pradesh Assembly has 175 seats and the majority mark is 88.

Delhi Government Moves Supreme Court Seeking Relief Amid Water Crisis During Heatwave

The Delhi government has taken the issue of the water crisis amidst scorching heatwave conditions in the national capital to the Supreme Court. In its plea, the AAP-led government has appealed for the release of additional water from neighboring states like Haryana, Uttar Pradesh, and Himachal Pradesh for a month to address the water shortage. The soaring temperatures in Delhi, with some areas reaching up to 50 degrees Celsius, have escalated the demand for water, prompting urgent action from the Delhi government. Emergency measures have been implemented, including banning the use of potable water for car washing and construction activities. The Delhi Jal Board (DJB) has announced stringent penalties, with fines of Rs 2,000 for wastage of water. Additionally, a war room has been established by the DJB to manage water tanker supply, with citizens urged to contact 1916 for assistance. Chief Minister Arvind Kejriwal has called for political cooperation, emphasizing the need to prioritize the welfare of Delhi’s residents over partisan interests. He stressed the importance of securing water resources from neighboring states and urged the BJP leaders to collaborate in resolving the crisis. Amid the heatwave, Delhi has also witnessed a record peak power demand, surpassing 8,300 MW for the first time in its history. Despite the unprecedented demand, the power situation in Delhi remains stable, distinguishing it from neighboring areas where residents are grappling with prolonged power cuts. As protests erupt in Noida and Ghaziabad over power outages, Kejriwal highlighted the nationwide challenge posed by the heatwave, emphasizing the need for collective action to mitigate its impact. He underscored Delhi’s relatively stable power supply amidst the crisis, attributing it to effective management by the government. The plea filed by the Delhi government underscores the severity of the situation and seeks urgent intervention to alleviate the water shortage, emphasizing the importance of collaborative efforts to ensure the well-being of Delhi’s residents during the ongoing heatwave.  

Karnataka Government Funds Diverted: FIR Filed Against Union Bank of India Officials

The managing director of the Karnataka Maharshi Valmiki Scheduled Tribe Development Corporation has filed a case against Union Bank of India officials, alleging fraudulent diversion of approximately Rs 94.73 crore of the corporation’s funds. This development follows the suicide of an official who cited irregularities involving substantial sums of money. Incident Details Allegation: The MD, A Rajashekar, claims that Union Bank officials fraudulently diverted Rs 94.73 crore of the corporation’s funds to other accounts. Timeline: On February 26, bank officials moved the corporation’s primary account from the Vasanthnagar branch to the MG Road branch with auditors’ and MD’s permission. Between March 4 and May 21, Rs 187.33 crore was deposited in the corporation’s account from the state treasury. Discovery: The MD discovered the fraudulent transactions on May 22 when informed by the bank that documents were allegedly sent by post, which the corporation never received. Signatures were reportedly forged to transfer funds, and no transaction alerts were sent via SMS or email. Follow-Up Actions Immediate Action: The chief manager of the MG Road branch returned Rs 5 crore to the corporation on May 23. Suicide Incident: On May 26, Chandrashekaran P, involved in auditing and coordinating with the bank, committed suicide, leaving a note implicating senior officials and mentioning instructions from a minister. Complaint and FIR: On May 28, Rajashekar filed a complaint at the High Grounds police station in Bengaluru, accusing six bank officials of the fraud. The police have registered a case under various sections of the Indian Penal Code related to criminal breach of trust, cheating, and forgery. Investigation and Political Reactions Investigation: Home Minister G Parameshwara confirmed the detection of irregularities and mentioned that the funds were diverted to 8-10 bank accounts. The CID is investigating the case. Minister’s Denial: Youth Empowerment, Sports, and Tribal Welfare Minister B Nagendra has denied any involvement, stating that no such instructions were given from his end. Opposition Demand: The BJP has demanded the resignation of Minister B Nagendra, with state president B Y Vijayendra calling for a judicial probe by a sitting high court judge into the incident. The case has drawn significant attention due to the scale of the alleged fraud and the tragic suicide of an official, highlighting serious concerns about financial governance and accountability within both the bank and the government corporation.

CBI Clears Air India-Indian Airlines Merger: Shiv Sena’s Raut Demands BJP Apology to Ex-PM Singh

The Central Bureau of Investigation (CBI) has concluded its investigation into alleged irregularities surrounding the Air India-Indian Airlines merger, filing a closure report due to lack of evidence of any wrongdoing. In response, Shiv Sena (UBT) leader Sanjay Raut has called on the Bharatiya Janata Party (BJP) to apologize to former Prime Minister Manmohan Singh for previous accusations. During the UPA era, the formation of the National Aviation Corporation of India Limited (NACIL) through the merger of Air India and Indian Airlines drew scrutiny. However, the CBI’s closure report suggests that no evidence of dishonest decisions or conspiracy has been found. Raut highlighted the BJP’s previous criticism of alleged corruption during Manmohan Singh’s tenure and insisted on an apology from the party in light of the CBI’s findings. The leasing of aircraft under NACIL, overseen by then-Union Civil Aviation Minister Praful Patel, has been a subject of investigation. However, the CBI found no evidence to support allegations of wrongdoing. Addressing reported disagreements among partners of the Maha Vikas Aghadi (MVA) coalition ahead of the upcoming Lok Sabha polls, Raut emphasized unity among allies. He announced an upcoming press conference featuring leaders from the MVA, including Uddhav Thackeray, Sharad Pawar, and Congress representatives, to address any concerns. Additionally, Raut revealed Thackeray’s participation in the Opposition INDIA bloc rally in New Delhi on March 31, aimed at safeguarding the country’s interests and democracy. This rally was organized following the arrest of Delhi Chief Minister Arvind Kejriwal by the Enforcement Directorate.