Prashant Kishor foresees major shifts in Modi 3.0, mentioning ‘It’s going to kick off with a bang…’. Breaking News

Prashant Kishor foresees major shifts in Modi 3.0, mentioning ‘It’s going to kick off with a bang…’.

Prashant Kishor anticipates significant changes

Kishor discussed his thoughts on the upcoming changes in the Modi government’s strategy against corruption.

According to political strategist Prashant Kishor, Prime Minister Narendra Modi’s third term could bring about some major transformations. One possibility is the inclusion of petroleum in the Goods and Services Tax (GST). Moreover, there might be crucial limitations placed on the financial autonomy of states.

Kishor revealed his insights on the anticipated structural and operational modifications in the Modi government’s anti-corruption tactics during an interview with India Today.

According to Kishor, the Modi 3.0 government is expected to make a powerful entrance. He anticipates a shift towards centralizing power and resources, along with potential measures to restrict the financial autonomy of the states.

Kishor, who led Narendra Modi’s 2014 campaign, mentioned that there isn’t widespread resentment towards the Prime Minister and anticipated that BJP would clinch about 303 seats. He also highlighted that states currently depend on three primary revenue streams: petroleum, liquor, and land. “I wouldn’t be surprised if petroleum is eventually brought under the GST umbrella,” Prashant Kishor commented.

Petroleum products such as petrol, diesel, ATF, and natural gas are currently excluded from GST. They fall under VAT, Central Sales Tax, and Central Excise Duty.

For a long time, the industry has been asking for petroleum products to fall under GST, but states are against it due to the potential revenue loss. Bringing petrol under GST would mean states relying more on the central government for their tax share.

At present, the highest GST tax bracket is 28%, but when it comes to petrol and diesel, the tax rate exceeds a staggering 100%.

Additionally, he made a prediction that the central government might postpone the allocation of resources to states and impose stricter regulations on the Fiscal Responsibility and Budget Management (FRBM) norms. The FRBM Act, which came into effect in 2003, imposes limitations on the annual budget deficits of states.

According to Kishor’s prediction, the center could potentially postpone the distribution of resources, while also tightening the rules for states to borrow off-budget.

Kishor also made a prediction about India’s stance on geopolitical issues. “On a global scale, India will become more assertive in its dealings with other nations. Diplomats have been discussing the possibility of Indian diplomacy becoming more aggressive, almost to the point of being arrogant,” he explained.