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A Look at Past Policies: PM Modi Criticizes Congress's Wealth Redistribution Plans

Introduction

Prime Minister Narendra Modi launched a scathing attack on the Congress Party's election manifesto, particularly its commitment to 'Wealth Redistribution' championed by Rahul Gandhi. In a fiery speech at a rally in Banswara, Rajasthan, on April 21st, PM Modi cautioned voters that if the Congress-led opposition forms the government, they intend to conduct surveys on the gold, silver, ornaments like Mangalsutra, and property owned by Indians. He accused the Congress of succumbing to the influence of leftists and urban naxals, echoing sentiments expressed by disaffected leaders who have departed from the party.


PM Modi's criticism reignited a debate surrounding the Congress Party's past implementation of Compulsory Deposit Schemes (CDS) during its previous tenures. These schemes mandated Indian citizens to deposit a portion of their income and revenue from property for specified periods, purportedly in the interest of economic development.


Historical Context

The Compulsory Deposit Scheme Act of 1963 and 1974, enacted by Congress-led administrations, required taxpayers, property owners, and government employees to deposit a percentage of their income and revenue from property. Notably, Dr. Manmohan Singh, who served as the Chief Economic Advisor of the Congress government in 1974, was involved in the implementation of one of these deposit schemes.


The 1963 Act stated,

"An Act to provide in the interest of national economic development for compulsory deposit and for the framing of a scheme in relation thereto."

It applied to various categories of individuals, including persons liable for land revenue, income tax, holders of urban immovable properties, government employees, company employees, and individuals with an annual income above Rs. 1,500.


It adds, “This Act shall apply to the following categories of persons, 

namely:—

  1. persons liable to payment of land revenue

  2. persons liable to payment of tax under the Income-tax Act;

  3. holders of immovable properties situated in urban areas assessed to tax employees of—


  • the Central and State Governments,

  • local authorities,

  • companies as defined in section 3 of the Companies Act, 1956 (1 of 1956), including foreign companies

  • any other corporation (including a cooperative society) established by or under a Central, Provincial, or State Acts,

  • individuals or associations of persons or bodies of individuals liable to payment of tax under the Income-tax Act


And other such categories of persons whose annual income is one thousand five hundred rupees or more and who are not liable to payment of tax under the Income-tax Act, as may be specified by the Central Government by notification in the Official Gazette.


The 1974 Act mandated taxpayers to deposit up to 18% of their income under this scheme, with the deposits held for a duration of 3 to 5 years. The legislation granted the government authority to establish subsequent CDS Acts, specifying rates and durations for withholding funds, as well as the power to suspend, reduce, or pardon compulsory deposits and grant exemptions.


Criticism and Concerns

PM Modi's remarks have sparked a political uproar, with the Congress party disputing his claims. However, critics, including netizen Arun Pudur, have censured the Congress for compelling individuals to deposit a substantial portion of their earnings into a fund held for a specified period, labeling these measures as blatant theft.


Netizens have expressed apprehensions that if the Congress were to return to power, they might reintroduce similar wealth redistribution schemes, citing the party's past actions as a precedent. PM Modi echoed these concerns, suggesting that the proposed wealth survey would result in the redistribution of assets, favoring those with larger families, undocumented migrants, and Muslims, referencing former PM Manmohan Singh's controversial statement regarding resource allocation.


Ideological Divide and Political Implications

PM Modi's criticism of the Congress Party's wealth redistribution agenda has reignited the ideological divide between the ruling Bharatiya Janata Party (BJP) and the opposition. The Prime Minister accused the Congress of adopting an ultra-leftist agenda akin to Maoist ideology, aligning with the observations of disaffected Congress leaders who have departed from the party.


The Prime Minister's remarks also took a swipe at senior Congress leader Sonia Gandhi, insinuating that those unable to succeed in elections have turned their attention to Rajasthan this time, mocking the declining stature of the Congress Party. PM Modi stated,

"The Congress party itself is responsible for the condition it has reached today. Earlier, Rajasthan sent former Prime Minister Manmohan Singh to Rajya Sabha, and now you have another leader of Congress in Rajya Sabha (Sonia Gandhi). People who knew that they could not win, ran away from the race and reached Rajya Sabha from Rajasthan."

Furthermore, PM Modi lambasted the Congress Party, stating,

"Congress hollowed the country by spreading the termites of 'parivaarwad' and corruption. The youth of the country is so angry with Congress that it doesn't want to see their face again."

He also mocked the party's declining electoral fortunes, remarking,

"A party which once commanded 400 seats is now struggling to contest 300 seats in the current Lok Sabha election, branding it a symbol of instability."

As the Lok Sabha election campaign intensifies, the debate over wealth redistribution and past compulsory deposit schemes is likely to intensify, with both parties attempting to sway voters with contrasting visions for the nation's economic and social policies.


Conclusion

The Prime Minister's criticism of the Congress Party's wealth redistribution promise has reignited a contentious debate surrounding the party's past implementation of Compulsory Deposit Schemes. While the Congress defends its actions as measures for economic development, critics perceive them as overreach and theft of citizens' hard-earned assets. As the election campaign progresses, this issue is likely to remain a focal point, with both parties vying to convince voters of their respective economic and social agendas. The ideological divide between the BJP and the Congress Party on matters of wealth distribution and resource allocation will undoubtedly shape the political discourse in the coming weeks, with PM Modi continuing to target the opposition's stance on wealth redistribution and the Congress Party defending its past policies and manifesto promises.

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