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How the Interim Budget Shapes the Electoral Landscape: An Insightful Analysis

What does the interim budget do for elections?

How the Interim Budget Shapes the Electoral Landscape: An Insightful Analysis

There is nothing to address this question succinctly. Ultimately, there aren’t any major populist pronouncements. It simply restates the 24×7 political-economic plan, which has so far shown to be quite successful for the Narendra Modi government, is the somewhat longer and more accurate response. These are the principal features of this plan. Over the course of its ten years in office, the current government has established a complex and well-organized system of welfare programs and fostered a sizable population of voters who are financially obligated and have become known as “labharthis” (beneficiaries). Welfare recipients are by no means a new demographic in India, but the BJP’s political brilliance is found in the way it has constructed a political conduit over the past ten years between this sizable underclass and the Prime Minister, who represents practically all of the party’s political capital.

Building this highway has been made possible in large part by the fact that, as a result of the Jan Dhan, Aadhaar, and Mobile (JAM) trinity, practically all welfare distribution in India now occurs via the direct benefit transfer (DBT) method. For many groups, the budget is merely another day in their lives filled with political discourse. The Prime Minister and the BJP’s political messaging is immediate and unrelenting whenever they receive a social benefit, which could be as minor as a few kilograms of rice or as major as a new house. The government’s intention to capitalize on the new demographic crop of “labharthis” who are waiting to be obliged is evident in the interim budget’s extension of various programs, such as the rural housing plan, which saw a significant increase in the number of houses built.

In fact, the BJP has been astute enough to create programs that, without using a single penny from the budgetary reserves, have given it political legitimacy for aiding the underprivileged. One such programme is Lakhpati Didi, where the number of beneficiaries who are targeted has increased by 10 million. The credit belongs to the government and hence the BJP, but the money is all from banks (despite government guarantee). As a result, it does not increase the government’s financial burden.

The budget speech’s mention of the only four “castes” worth concentrating on: farmers, the impoverished, women, and youth, demonstrates the BJP’s intention to use these welfare programs to thwart any political attempt to revive Mandal politics and unite voters from other backward classes (OBCs) against it in the run-up to the 2024 elections. Social justice was mostly a political catchphrase in the past. The finance minister stated in her statement that social justice is an efficient and essential form of governance for our government. There was no way to have expressed it more clearly.

Strategic Economic Narratives and Fiscal Policies: Bolstering BJP’s Electoral Prospects

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Building narratives is the budget’s second key political component. Setting the economic narrative has taught the BJP lessons. The party experienced a shocking setback in the 2004 general elections, which were fought on the economic hubris of the “India Shining” campaign. Instead of the “it’s your fault if you cannot feel it” attitude of “India Shining,” it offers prosperity and well-being as a work in progress that will only materialize if the BJP stays in power.In addition, it takes advantage of the past performance of its predecessor to capitalize on what is known as retroactive anti-incumbency. The budget speech makes another attempt to do just that when it refers to India being in the “fragile five” in 2014 due to “the mismanagement of those (UPA) years.”

Additionally, the government’s economic narrative captivates voters with a thousand details rather than depending on a single, decisive statistic. Examples of this type of infrastructure include airports, Vande Bharat trains, rivalry between major religious tourism destinations, and the sale of tax disputes involving sums as small as ₹25,000 or even ₹10,000. The average macro economist may get bored with these nuggets, but the lay voter base is kept engaged and satisfied, and the number of voters who have been directly obligated by the government in one way or another rises as a result.

The last, but certainly not least, concern is the impact of this budget on the capital, a constituency that is crucial to the elections but is numerically minor. The government has sent a very strong message to Indian capital through its adherence to the fiscal glide path, its focus on capital expenditure, its provision of up to a trillion rupees in interest-free loans over a 50-year period to private entities for the purpose of scientific research, its assurance that tax holidays for entities like sovereign wealth funds are maintained during election years, and its subtly expressed satisfaction that inflation is within the “target band” of 2%-6%, despite the Reserve Bank of India’s insistence that it stabilize at the real target of 4%.  These steps will lower operating costs, calm concerns about inflation, and—most importantly—open up formerly restricted segments of the Indian economy to private investment. This implies that large corporations will gladly wager on the political steadiness and policy consistency that the BJP guarantees.

Also Read: Union Minister Asserts: Being a Fintech Doesn’t Exempt Anyone Amid Paytm Crisis

Final Thought

The economic strategy of the Narendra Modi government is summed up in both the most recent budget and its earlier policies. It exhibits a deft combination of welfare populism and calculated economic planning meant to build a wide base of support and encourage investment and growth. In the last ten years, the government has methodically constructed a web of welfare programs that not only provide for the basic needs of a large underclass but also establish a direct political conduit between the Prime Minister and the recipients (labharthis). This has allowed the government to gain a devoted support base by effectively utilizing the Jan Dhan, Aadhaar, and Mobile (JAM) trinity for direct benefit transfers (DBT).

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Expanding schemes such as the rural housing plan and the creative Lakhpati Didi project is a prime example of the government’s two-pronged strategy of improving welfare without piling too much strain on the fiscal budget and strategically employing banking resources to gain political capital. This approach has strengthened the BJP’s standing with the traditionally marginalized segments of society and placed it in a defensive position against any return to caste politics by concentrating on common themes of development for women, youth, farmers, and the impoverished.

Furthermore, the narrative-building element of the budget, which places a strong emphasis on continued prosperity and well-being, departs from previous economic arrogance and positions the BJP as the champion of unceasing advancement. The government deftly balances the expectations and complaints of the people by emphasizing its accomplishments and drawing comparisons with the alleged shortcomings of earlier administrations, all the while upholding a narrative of stability and advancement.

The budget also makes a strong statement to the capital markets and the larger business community by highlighting capital expenditure, fiscal restraint, and incentives for private R&D spending. The government’s commitment to preserving an inviting investment climate is demonstrated by these steps, which are intended to reassure investors, encourage private sector involvement, and guarantee policy continuity.

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Air India Express Takes Action Amid Ongoing Flight Cancellations, Assures Efforts to Alleviate Crisis

Air India

Air India Express Takes Action Amid Ongoing Flight Cancellations, Assures Efforts to Alleviate Crisis

A new statement from Air India Express stated that it was working to alleviate the problem, but the airline was still reeling from 24 hours of flight cancellations. On Wednesday, the airline terminated the contracts of some senior cabin crew members who had “reported sick” the day before. The number of workers who received notice of termination from the airlines is not yet known; however, news outlet PTI stated that at least 25 senior crew members were let go from the company. Nevertheless, several media outlets have reported that there might be up to 30 staff let go. The airline said in a letter of termination that it had received from one of its workers that a significant portion of its personnel had called in ill at the last minute. The letter stated, “This clearly points to a pre-meditated and concerted abstention from work without any justification.”

Air India Express also said, per the report, that the crew members’ actions led to the cancellation of several flights, which had an impact on the airline’s schedule and inconvenienced passengers. As a result, it immediately ended the involved employees’ contracts. “Your act is not only subversive of public interest but has also caused embarrassment, severe reputational damage, and serious monetary loss to the company,” the corporation stated in the letter terminating the employees.

AIR INDIA EXPRESS TO OPERATE 292 FLIGHTS TODAY

A representative for Air India Express said that despite the continuous interruptions to the airline’s flight operations, 292 flights would be operated on Thursday with assistance from Air India; 74 flights have been canceled. “Air India Express is doing everything within our power to minimize the disruption this unforeseen circumstance has caused to our guests.” Today, there will be 292 flights that we run. The representative stated, “We have mobilized all available resources, and Air India will help us by running on 20 of our routes.

Also Read: Air India Express Crisis: Mass Sick Leaves Lead to 70 Flight Cancellations

OVER 100 EMPLOYEES REPORTED SICK LAST MINUTE

Air India Express CEO Aloke Singh revealed in a statement on Wednesday that the airline will be cutting back on flights over the next few days as a result of a considerable number of cabin crew members reporting unwell right before their planned shifts. The airline has already canceled over 90 flights.

“More than 100 of our coworkers in the cabin crew have abruptly reported sick before their scheduled flight duties, seriously interfering with our business operations. In a 350-word statement, the CEO stated that “the impact was disproportionate, disrupting over 90 flights even though other colleagues reported for duty because this action was mostly by colleagues assigned L1 roles.”

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Air India Express Crisis: Mass Sick Leaves Lead to 70 Flight Cancellations

Air India Express

Air India Express Crisis: Mass Sick Leaves Lead to 70 Flight Cancellations

Air India Express crisis: According to Air India Express, a portion of its cabin crew reported being unwell, forcing the airline to cancel certain flights. “A section of our cabin crew has reported sick at the last minute, starting last night, resulting in flight delays and cancellations,” an Air India Express official stated, as cited by the news agency. Our staff is aggressively resolving this problem to minimize any difficulty this may give to our visitors, even as we are interacting with the crew to learn the causes of these incidents.

Air India Express apologizes to travelers

The representative went on, “We want to emphasize that this does not represent the kind of service we aim to give and that we sincerely apologize to our visitors for this unplanned disturbance. Refunds in full or free rescheduling to another date are provided to guests who are affected by cancellations. It is required of our guests that, before leaving for the airport, they check to see whether their flight is disrupted. This comes after a union that represents a portion of the cabin crew at Air India Express said last month that the airline is being mishandled and that employees are not treated equally. The mishandling of the events, according to the Air India Express Employees Union (AIXEU), has also impacted staff morale.

Also Read: Passengers complain about Air India Express cancellations.

On social media, a few travelers expressed their displeasure at the unexpected flight cancellations. Air India Express responded to a passenger’s post on X (previously Twitter) on a canceled flight by stating that it was canceled “due to operational reasons.”. “As part of our service recovery process, you can either opt to reschedule the flight within the next 7 days or request a full refund through our chatbot, Tia…” the airline stated.

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Bank Employees Anticipate 5-Day Work Week as Key Approval Remains Pending

Bank

Bank Employees Anticipate 5-Day Work Week as Key Approval Remains Pending

Bank workers’ demands for a 5-day workweek are expected to be met shortly because the Indian Banks’ Association (IBA) and employee unions have already inked an agreement on the subject. The bank personnel anticipate receiving government clearance later in 2024; as of right now, only that is pending. The United Forum of Bank Unions and other bank employee unions have long advocated for a five-day workweek that excludes Saturdays. They guarantee that this won’t result in fewer hours spent providing customer service. A memorandum of understanding was subsequently signed in December 2023 between bank unions and the Indian Banks’ Association (IBA), which comprises both government-run and private institutions. A proposal for a 5-day workweek was included in this agreement, pending government approval.

The IBA and bank unions then signed the 9th Joint Note on March 8, 2024. The shift to a 5-day workweek with Saturdays and Sundays off was stated in the Joint Note, which was endorsed by the All India Bank Officers’ Confederation and the IBA. The government has the last say, even though the IBA and bank unions have reached an agreement. The Reserve Bank of India (RBI), which controls interbank transactions and banking hours, would also be consulted on the plan. The administration hasn’t set a formal timeframe for that. A few bank employees, however, said that they anticipate receiving the government’s warning by the end of this year or the beginning of 2025.

Also Read: Raymond reappoints Gautam Hari Singhania as MD for another five years

Saturdays will be recognized as official holidays under Section 25 of the Negotiable Instruments Act if they are authorized. It is stated that should the 5-day work week be adopted, the government will publish revised working hours that will extend the workday by forty minutes, from 9:45 a.m. to 5:30 p.m. Currently, the second and fourth Saturdays are closed for bank branches. Since 2015, bank unions have called for annual leave that includes all Saturdays and Sundays. In accordance with the terms of the 10th Bipartite Settlement, which was signed in 2015, the government, RBI, and IBA decided to make the second and fourth Saturdays holidays.

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