BJP’s recent Assembly poll defeats may have influenced Budget policies

The BJP is hoping that it would be the Budget that could game the election for them.

The shadow of losses the BJP suffered in the recent Assembly polls in Madhya Pradesh, Rajasthan and Chattisgarh loomed large over the Union Budget as it had over the policy decisions taken over the last two months.

The poll campaign and the results revealed to the BJP not just that their own cadre was upset with lack of forward movement on ideological issues, but that there was upper caste resentment and most of all, anger among farmers who had seen liquidity being sucked out of the economy as the effects of demonetisation kicked in.

While the government got a 10% quota for economically weaker sections in the general category cleared through Parliament to assuage the upper caste anger and asked the Supreme Court to vacate the stay on the undisputed land in Ayodhya to appease the Sangh Parivar, the relief package for farmers and raising of the exemption of income tax were the ones that took most time.

BJP leaders are hoping the farmers' income support scheme and interest subventions on farm loans will reverse some of the anger felt in the run-up to the general election, while keeping those with incomes of upto ₹ 5 lakh out of the tax bracket, will appeal to the party’s traditional middle class vote bank.

BJP chief Amit Shah said the Budget was "historic" in its scope and proved once again the pro-poor, and pro-farmer credentials of the government. Tax relief to those with income below ₹ 5 lakh "will not only provide tax relief to the middle class but also deepen their participation in the country’s development," he stated.

The Opposition was quick to brand the Budget an informal BJP manifesto for the coming general election. The BJP is hoping that it would be the Budget that could game the election for them.