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By:

Abhijit Mulye

21 August 2024 at 11:29:11 am

Gen Z revolt leaves Modi govt scrambling

Mumbai: The recent CJP agitation at Jantar Mantar, amplified by a ferocious wave of social media backlash, has achieved what years of fragmented opposition politics could not: it has visibly shaken the highest echelons of the Narendra Modi government. For the first time in over a decade, the seemingly impenetrable fortress managed by Prime Minister Modi and Home Minister Amit Shah appears vulnerable. Driven by a Gen Z demographic that refuses to play by traditional political rules, the...

Gen Z revolt leaves Modi govt scrambling

Mumbai: The recent CJP agitation at Jantar Mantar, amplified by a ferocious wave of social media backlash, has achieved what years of fragmented opposition politics could not: it has visibly shaken the highest echelons of the Narendra Modi government. For the first time in over a decade, the seemingly impenetrable fortress managed by Prime Minister Modi and Home Minister Amit Shah appears vulnerable. Driven by a Gen Z demographic that refuses to play by traditional political rules, the movement has made the ruling dispensation’s meticulously crafted narrative look starkly outdated. The scale and intensity of the public unrest have triggered alarm bells, prompting the government to take unprecedented corrective measures. In a remarkable departure from its usual top-down approach, the Union government has officially deputed Officers on Special Duty (OSDs) to execute a massive ground-level feedback-gathering exercise. Insiders reveal that this crisis management strategy operates on multiple tiers. The government is actively seeking counsel from technology experts and content analysts to decipher exactly what went wrong and to understand the strategic advantages of the digital content generated by CJP supporters. These grassroots digital campaigns brought about a drastic, organic shift in public expression that caught the administration entirely off guard. Furthermore, officials are engaging in candid dialogues with independent, well-meaning individuals tasked with holding a mirror to the administration's failures. Professionals entrusted with coordinating these meetings admit the outcome remains uncertain, but the sheer scale of outreach marks a watershed moment for a government usually insulated from external critique. The political vacuum created by this unrest has been masterfully exploited by the opposition. Capitalizing on the opening created by the CJP protests and climate activist Sonam Wangchuk, Rahul Gandhi has seized the political advantage. By deploying an emotional narrative—particularly regarding the use of pellet guns—Gandhi has effectively targeted Amit Shah, leaving the Prime Minister cornered. The optics in Parliament have been equally jarring for the ruling party. For the first time in twelve years, fumbling, elderly figures within the BJP found themselves outmatched by the scathing, articulate assaults from Rahul and Priyanka Gandhi. Armed with quick wit, finesse, and an undeniable superiority in content, the Congress leadership is dictating the terms of the debate, forcing the BJP onto the defensive. This sudden vulnerability has blown the lid off simmering discontent within the ruling party. Insiders are now openly arguing that the hyper-centralization of power by Modi and Shah is fundamentally flawed. The strategy of installing dependent "yes-men"—leaders who shine merely in borrowed light—in key state positions is backfiring spectacularly. While this iron-fisted strategy yields dividends during favourable times, the current crisis proves that an artificially sustained leadership cannot withstand a genuine storm. Many within the party lament the sidelining of softer, grassroots-connected leaders like Shivraj Singh Chouhan. A leader of Chouhan's calibre, possessing natural empathy and a deep understanding of the masses, could have offered a sympathetic and appealing rebuttal, contrasting sharply with the shallow, dry rhetoric currently being peddled by the party's younger, yet out-of-touch, defenders. The immediate consensus is that the party desperately needs to replace its aging heavyweights with articulate voices who can genuinely connect with an evolving electorate. Perhaps the most shocking revelation from the fallout is the catastrophic failure of the Rashtriya Swayamsevak Sangh's (RSS) legendary feedback and feed-forward mechanism. For decades, the RSS has served as the eyes and ears of BJP governments, but this time, the machinery completely failed to gauge the scale of the impending unrest. According to senior insiders, the root cause lies in a deep-seated rot within the RSS itself. As the organization celebrates its centenary year, it is grappling with an internal crisis. Unlike previous BJP regimes where the political arm bore the exclusive brunt of corruption allegations, the malaise has now reportedly crept into the highest echelons of the RSS leadership. This unprecedented internal decay has severed the organization's vital connection to the ground, leaving the BJP flying blind during a crucial socio-political upheaval.Despite the prevailing anxiety within the corridors of power, the newly initiated feedback-gathering exercise is being hailed as a much-needed course correction by veteran leaders within both the party and the RSS. Long-sidelined stalwarts view this desperate measure as a vindication of their long-held grievances against the centralized high command. While the designated OSDs and professionals remain cautiously optimistic about the immediate impact of their data-gathering, these old-guard insiders sense a rare opportunity. They believe that confronting the unvarnished truth from the ground might finally force a complete and necessary overhaul of the Parivar organizations, dismantling the fragile, sycophantic structures currently in place and returning the party to its grassroots origins.

Budget 2026: Cautious Today, Focused on Tomorrow

The budget places greater emphasis on long-term growth, structural reforms, and financial discipline rather than short-term relief.

The Union Budget 2026 has been presented at a time when the economy is showing steady growth yet continues to face persistent challenges such as inflationary pressures, unemployment concerns, and uncertainty in the global economic environment. Against this backdrop, the budget places greater emphasis on long-term growth, structural reforms, and financial discipline, rather than prioritising immediate or short-term relief measures.


Overall Fiscal Approach

The budget continues the government’s focus on containing the fiscal deficit while simultaneously increasing spending in productive and growth-orientated areas. Higher allocations have been made for capital expenditure, including investments in roads, railways, ports, and urban infrastructure. Such spending not only generates employment in the short term but also improves efficiency, boosts connectivity, and supports sustainable economic growth over the longer period.


At the same time, the government has consciously avoided large-scale giveaways or populist measures. This approach signals a clear intent to preserve financial stability, maintain investor confidence, and manage public debt in a cautious and responsible manner.


Impact on Taxpayers

For individual taxpayers, the budget offers stability rather than any significant relief. Income tax slabs have largely remained unchanged, which may come as a disappointment to the middle class that was hoping for meaningful tax cuts. In the context of rising living costs and inflation, the real benefit of existing tax provisions appears limited. As a result, tax planning will continue to operate within the current framework, relying on available deductions, exemptions, and investment-linked incentives.


For companies, the budget provides a sense of certainty and continuity. Corporate tax rates have been left unchanged, enabling businesses to plan future investments and expansion with greater clarity. Changes related to the taxation of share buybacks are aimed at reducing tax advantages available through specific routes and ensuring a more level playing field between dividends and buybacks. While these changes may increase the tax burden for some companies, they also simplify the tax structure and enhance transparency and fairness in the system.


GST and Compliance

On the GST front, the budget has not announced any major changes to tax rates, providing continuity and predictability for businesses. However, the government has clearly signalled a move towards stricter monitoring and enforcement through increased use of technology, data analytics, and invoice matching. As a result, businesses—particularly small and medium enterprises—will need to be more vigilant with return filings, reconciliations, and maintenance of proper documentation.


While compliance requirements may become more demanding, stronger enforcement measures can help curb tax evasion and promote a more level playing field. Over time, this is expected to improve overall tax discipline and foster fairer competition across markets.


Sectoral Focus

Infrastructure remains the biggest beneficiary of Budget 2026, with sustained investment in transport, logistics, and urban development continuing to be a key policy priority. Such spending is expected to stimulate economic activity across a wide range of sectors by improving connectivity, reducing costs, and enhancing overall productivity. Technology-focused areas, including digital infrastructure, cloud services, and artificial intelligence, have also received increased attention, reflecting the government’s emphasis on building a future-ready and innovation-driven economy.


At the same time, allocations for certain welfare schemes have seen only marginal increases. This has raised concerns about whether consumption demand, particularly from rural and lower-income groups, will see a meaningful boost in the short term.


Conclusion

Union Budget 2026 is cautious and forward-looking in its overall approach. It prioritises the creation of a strong and resilient economic base rather than offering immediate tax relief or short-term incentives. While certain sections of the population may feel some pressure due to limited short-term benefits, the budget seeks to lay the foundation for stable and sustainable growth over the long run. Its real success will ultimately depend on how effectively the announced measures are implemented, particularly through the efficient and timely use of the capital and revenue expenditure outlaid.


Disclaimer: This article represents a general opinion based on budget provisions and economic observations. It is not intended to support or oppose any political party or ideology.


(The writer is a Chartered Accountant based in Thane. Views personal.)

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