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By:

Abhijit Mulye

21 August 2024 at 11:29:11 am

Shinde dilutes demand

Likely to be content with Deputy Mayor’s post in Mumbai Mumbai: In a decisive shift that redraws the power dynamics of Maharashtra’s urban politics, the standoff over the prestigious Mumbai Mayor’s post has ended with a strategic compromise. Following days of resort politics and intense backroom negotiations, the Eknath Shinde-led Shiv Sena has reportedly diluted its demand for the top job in the Brihanmumbai Municipal Corporation (BMC), settling instead for the Deputy Mayor’s post. This...

Shinde dilutes demand

Likely to be content with Deputy Mayor’s post in Mumbai Mumbai: In a decisive shift that redraws the power dynamics of Maharashtra’s urban politics, the standoff over the prestigious Mumbai Mayor’s post has ended with a strategic compromise. Following days of resort politics and intense backroom negotiations, the Eknath Shinde-led Shiv Sena has reportedly diluted its demand for the top job in the Brihanmumbai Municipal Corporation (BMC), settling instead for the Deputy Mayor’s post. This development, confirmed by high-ranking party insiders, follows the realization that the Bharatiya Janata Party (BJP) effectively ceded its claims on the Kalyan-Dombivali Municipal Corporation (KDMC) to protect the alliance, facilitating a “Mumbai for BJP, Kalyan for Shinde” power-sharing formula. The compromise marks a complete role reversal between the BJP and the Shiv Sena. Both the political parties were in alliance with each other for over 25 years before 2017 civic polls. Back then the BJP used to get the post of Deputy Mayor while the Shiv Sena always enjoyed the mayor’s position. In 2017 a surging BJP (82 seats) had paused its aggression to support the undivided Shiv Sena (84 seats), preferring to be out of power in the Corporation to keep the saffron alliance intact. Today, the numbers dictate a different reality. In the recently concluded elections BJP emerged as the single largest party in Mumbai with 89 seats, while the Shinde faction secured 29. Although the Shinde faction acted as the “kingmaker”—pushing the alliance past the majority mark of 114—the sheer numerical gap made their claim to the mayor’s post untenable in the long run. KDMC Factor The catalyst for this truce lies 40 kilometers north of Mumbai in Kalyan-Dombivali, a region considered the impregnable fortress of Eknath Shinde and his son, MP Shrikant Shinde. While the BJP performed exceptionally well in KDMC, winning 50 seats compared to the Shinde faction’s 53, the lotter for the reservation of mayor’s post in KDMC turned the tables decisively in favor of Shiv Sena there. In the lottery, the KDMC mayor’ post went to be reserved for the Scheduled Tribe candidate. The BJP doesn’t have any such candidate among elected corporatros in KDMC. This cleared the way for Shiv Sena. Also, the Shiv Sena tied hands with the MNS in the corporation effectively weakening the Shiv Sena (UBT)’s alliance with them. Party insiders suggest that once it became clear the BJP would not pursue the KDMC Mayor’s chair—effectively acknowledging it as Shinde’s fiefdom—he agreed to scale down his demands in the capital. “We have practically no hope of installing a BJP Mayor in Kalyan-Dombivali without shattering the alliance locally,” a Mumbai BJP secretary admitted and added, “Letting the KDMC become Shinde’s home turf is the price for securing the Mumbai Mayor’s bungalow for a BJP corporator for the first time in history.” The formal elections for the Mayoral posts are scheduled for later this month. While the opposition Maharashtra Vikas Aghadi (MVA)—led by the Shiv Sena (UBT)—has vowed to field candidates, the arithmetic heavily favors the ruling alliance. For Eknath Shinde, accepting the Deputy Mayor’s post in Mumbai is a tactical retreat. It allows him to consolidate his power in the MMR belt (Thane and Kalyan) while remaining a partner in Mumbai’s governance. For the BJP, this is a crowning moment; after playing second fiddle in the BMC for decades, they are poised to finally install their own “First Citizen” of Mumbai.

Bold Promises

For her eighth consecutive budget, Finance Minister Nirmala Sitharaman struck a populist tone, offering tax cuts, sectoral incentives and ambitious growth targets. Yet, as with all budgets, execution will determine whether these proposals translate into tangible gains. India has seen its share of grand announcements, only for bureaucratic inertia to stall their impact. This year must be different. The government must swiftly implement its pledges, ensuring they do not remain mere aspirations.


The budget’s most talked-about feature is the massive relief for taxpayers. The middle class, long grumbling about its tax burden, received a windfall with the tax rebate threshold was raised from Rs. 7 lakh to Rs. 12 lakh. The highest tax rate of 30 percent now kicks in only after Rs 24 lakh. The move leaves more disposable income in the hands of consumers. The government is betting that this will spur consumption and private-sector investment, reigniting economic activity.


However, the gamble is not without risks. The Rs. 1 lakh crore in foregone tax revenue risks straining public finances even as the government targets a 4.4 percent fiscal deficit in 2025-26. The feasibility of achieving this target while expanding social-sector schemes remains to be seen. Much will depend on whether tax relief truly stimulates growth.


Beyond tax cuts, the budget focuses on self-reliance. The National Mission for Edible Oilseeds seeks to achieve independence in pulses over six years, targeting crops like tur, urad and masur dal. The move is pragmatic as India remains heavily dependent on imports for its oilseed requirements. A more resilient domestic supply chain will insulate the country from global price shocks. Yet success will depend on whether central agencies such as NAFED and NCCF efficiently procure and distribute produce, preventing the kind of bureaucratic bottlenecks that have hampered past agricultural reforms.


Politics, too, played its part. Bihar, which heads to the polls later this year, has received a generous allocation. Meanwhile, Andhra Pradesh, a key NDA ally, finds itself largely ignored. The opposition has been quick to seize upon this, questioning whether fiscal policy is being used to reward electoral loyalty.


The budget signals a shift in capital expenditure, missing projections by Rs. 1 lakh crore. Despite historically high allocations, the slowdown is concerning, as infrastructure investment drives jobs and growth. The government must prevent this dip from stalling economic momentum.


There is, however, a welcome shift towards employment generation. The Production Linked Incentive (PLI) scheme, which previously favoured capital-intensive industries, is now supplemented by incentives for labour-intensive sectors such as textiles and leather.


Looking ahead, much will hinge on how effectively these policies are implemented. India’s economic survey envisions 8 percent growth annually to achieve ‘Viksit Bharat’ by 2047. The finance minister’s task does not end with presenting a well-crafted budget. The government must now ensure that promises translate into real benefits. Delays in execution will mean lost opportunities, and India, poised for high growth, can ill afford them. Speed matters.

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