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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.

Tax Terrorism Makes Impact

Tax Terrorism

Around two years ago, while addressing the gathering at the Krishhithon Agriculture Expo held in Nashik, then state agriculture minister Abdul Sattar said that his government will urge the Centre to abolish GST on farm supplies including fertilizer, seeds, and even agricultural equipment. It is critical to lower the cost of agricultural inputs. Farmers will benefit from reduced GST rates on all goods used for farming. I have spoken with Chief Minister Eknath Shinde about the situation, and the state government would shortly bring this topic up with the Center, the minister had stated at the event. Two years later the situation has not changed and the helpless agrarian community bearing the burden. The government which is very generous with the diamond jewellery sector while imposing the tax has not even left the educational field along with the farmers. The state government is not leaving any stone unturned to add to the woes through the SGST.  


The Goods and Services Tax was implemented in India with effect from 1st July 2017. In India, the maximum population is of the middle class and lower middle class where people either belong to the service class or they depend on agriculture for their living. In this scenario, the most important question is what is the impact of GST on a common man or a middle-class family. For the general public, the actual impact of any economy is when the prices of their necessities become affected. For the public in large when prices become low for the day-to-day goods and services that are consumed, the economy is good, else if the inflation rate is higher, then the public gets unsatisfied with the changes done by the government.


The single largest contributing Sector to the Indian Economy is Agriculture. It alone accounts for up to 16 percent of the Indian GDP. GST was supposed to have more of a greater indirect impact on the Agriculture Sector. GST directly or indirectly affects all sections of the economy. Agriculture industry is too not an exception. Transportation is one factor that has a direct impactful effect on Agriculture. The GST rate levied on agricultural products is 5 percent.


At the same time, GST rates on education services in India range from 5 percent to 28 percent, varying significantly depending on the type of service provided. Interestingly, diamond jewellery has finally been brought under the GST regime.


Now GST on diamonds being cut and polished from 0.25 percent to 1.5 percent effective from 18th July 2022. This shows the government’s overall approach towards the elite class. Significantly, GST on aircrafts, helicopters and cruise ships is also very nominal. The issue of ‘Tax terrorism’ was raised in Parliament. INDIA bloc leaders protested against increasing GST on various sectors. The government is in no mood to relent. People are suffering but a certain class is getting privileges.

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