Page 32 - Tehelka Issue 14E

COLUMN

PM Modi vs Opposition: ing orientation. In the wake of media

reports that the GST collections in each
The battle begins of the months between March 2018 and
May 2018 have been lower than the col-
lection in February 2018. In 2018-2019,
the Central government hopes to earn
The ruling BJP claims major issues like demonetisation, GST, employment and Foreign 6, 03, 900 crore from central GST. Some
HARD Policy as party’s USP, while for the Opposition, it is the prime ammunition to target the economists opine that this works out to
50,325 crore per month on an average.
LINE PM Modi-led government in the forthcoming electoral campaigns The collections in April and May 2018
were 32,089 crore and 28,119 crore,
ANIL SINGH rime Minister Narendra Modi’s has now been confirmed that 98.8 per cent respectively. Pointing out that this being
speech at the much touted of demonetized currency has come back to way below the target of 50,325 crore per answer is that GDP growth figures are come to face a unique combination of
‘mammoth’ rally at Jaipur on July the Reserve Bank of India. month, some economists ask as to how probably overestimated on account of diplomatic, security and strategic chal-
The columnist is 7 perhaps has sounded as the Arguing that not even 0.01 per cent of does this make GST a success, when the the mis-measurement of GDP in the new lenges under the Modi government. The
Executive Editor of P signal ahead of the state assem- the black money has been extinguished, government is not able to achieve the National Accounts Statistics and this growing economic, defence and strategic
News24 news bly elections. These elections are scheduled some critics point out that the big failure target it set for itself. leads one to believe that the economy is partnership with the U.S. is being ques-
channel. The views to be held in Chhattisgarh, Madhya Pradesh, of demonetisation is that it was carried out While drawing attention to the de- probably growing much slower. tioned on account of the transactional
here expressed are the Mizoram and Rajasthan by this year end without preparation and caused big losses cline in Indian merchandise exports as a While raising doubts about govern- nature of the Trump administration,
author’s own and Lok Sabha elections in mid-2019. Four to the unorganised sector. This has not been proportion of the GDP owing to the GST, ment’s claim that 4.1 million new jobs its unreasonable trade demands, and
major issues — Demonetisation, Goods and factored into the recent data on growth some critics opine that prior to the im- were created in the economy’s formal its sanctions related to Iran and Russia
Services Tax (GST), Employment and For- rate, so the loss to the economy could be in plementation of the GST, the exports to sector during since September 2017, that are unmindful of India’s interests
eign Policy — which the ruling BJP claims lakhs of crores of rupees. Farmers, traders GDP ratio was 12.1 per cent in 2016-2017 some experts argue that this data is and costs. Some of India’s efforts, such
as its USP and the Opposition parties as and the youth are all agitating. Recent me- and in 2017-2018, it fell to 11.7 per cent based on the enrolment of additional as membership of the Nuclear Suppliers
the prime ammunition to target the ruling dia reports also show a two-fold increase in post GST period. According to these workers under state-provided (or man- Group and a facility in Seychelles, have
dispensation during the ensuing electoral in the deposits by Indians in Swiss banks critics, a major reason for this is because dated) social security schemes; therefore, been stymied and not to talk of India’s
campaigns. Undoubtedly, local and regional during 2017 and some critics call it a ‘failure exporters did not get GST refunds on this claim seems questionable on em- membership of the UN Security Council.
issues like law and order, the plight of the of demonetisation.’ Even the government’s time, which created a working capital pirical and conceptual considerations.
farmers along with other issues will rule claim about demonetization as a way of problem for them. The multiplicity of Besides, the official claim is about the Way Forward
the roost of campaigning particularly addressing a large number of fake currency GST rates: 5, 12, 18 and 28 per cent is the formal or organized sector, which at best Aggressive propagation of cultural
in Chhattisgarh, Madhya Pradesh and notes circulating in the economy was based fundamental problem of the GST system. counts for 15 per cent of India’s labour nationalism resulting in mob-lynching,
Rajasthan assembly hustings; nevertheless, on a false premise, as it turned out, it was The prime minister Modi’s recent de- force and there is no way of knowing unabated atrocities on Dalits and mi-
the four national issues will play a pivotal closer to 40 crore. fence of the GST by saying that milk and what is happening in agriculture and the norities, increasing incidents of crimes
role as well. These issues have formed the Linkage to terrorism, as one of the main Mercedes cannot be taxed at the same non-farm informal sector, accounting against women, burgeoning unemploy-
highlights of Prime Minister Modi’s recent components of the reason for demonetisa- rate is rebutted by some experts who ar- for 85per cent of the workforce. ment and the miserable plight of the
The Opposition interview to Swarajya magazine also. tion, and its outcome in terms of the way gue that milk is not taxed under GST and farmers, especially in the BJP-ruled
is questioning Demonetisation it was articulated has been abysmal. In the pitiably while diamonds are taxed at 0.25 Foreign Policy states, along with failure in fulfilling its
Much-hyped foreign visits to over 50
promises have cumulatively made the
wake of the failure of attaining the de-
per cent and gold at 3 per cent, sanitary
the Modi-led Demonetisation was launched on Novem- clared objectives of demonetisation, some napkins are taxed at 12 per cent. countries during the past years by prime picture more complicated. There are
government ber 8, 2016, as a means of tackling the black experts point out that the goalposts started Employment minister Modi are touted as ushering in strong sui generis challenges and head-
shifting when it became apparent that the
the dawn of a new era in India’s relations winds, requiring course modulation and
economy, stop the circulation of fake cur-
on providing rency and stop funding of the terrorists in main reason was not justified by what was The Opposition has been questioning with other countries. However, experts adaptation. Fudging the data to conceal
its failures and projecting a greener
disagree with this hype by pointing out
J&K and the Maoists-hit areas. Undoubtedly, happening. Apart from a vast majority of
the Modi-led government on providing
two-crore jobs the Modi Government claims its measure experts raising scepticism over the demon- two-crore jobs every year as promised that India has lost its eminent position in pasture to hoodwink the gullible masses
every year as of launching the demonetisation having etization, the Opposition is also questioning during the elections and there is no South Asia owing to its ‘reckless adven- via publicity blitzkrieg may look attrac-
achieved its avowed objectives; nonethe-
tive for the BJP to wrest power again;
satisfactory answer in the absence of
turism’ in its neighbourhood, which is
the rationale behind such a ‘drastic’ meas-
promised during less, a vast majority of experts and major ure to which the ruling dispensation has no reliable statistics. As the formal sector tilting towards China. A pall of ‘unease’ nevertheless, it also affords sufficient
polls and there is Opposition parties rebut official claims. It satisfactory answer. accounts for just about 8-15 per cent of has reportedly descended on India’s re- ammunition for the Opposition to target
is argued that demonetisation was carried
India’s workforce, the official estimates
lations with China in the wake of Doklam the BJP, provided it gets its house in order
no satisfactory out on the incorrect premise that black Goods and Services Tax are completely silent about the majority standoff and Modi has to visit China and present a united face. The ensuing
answer in the money means cash. It was also thought The GST, launched with much fanfare last of the workforce engaged in the informal thrice thereafter to keep the later in good assembly elections in four states by year-
humour. Russia holding anti-terror drills end is going to be a testing ground and
year, has just completed one year. The Modi
that if cash was squeezed out, the black
sector. While raising the question as to
absence of economy would be eliminated. However, government wants the nation to believe why few jobs are so created when the with Pakistan in 2017 attest to ‘decline’ in one needs just to wait and watch.
reliable statistics some experts opine that cash is only one the new tax has been a great success — not economy is said tobegrowing at over the special relationship with Moscow. LETTERS@TEHELKA.COM
7 per centsome critics opine that an
Many experts opine that India has
component of black wealth: about 1% of it. It surprising, given this government’s market-
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