Cos Bill not in this budget

New Delhi, May 16: The crucial Insurance Regulatory Authority (IRA) Bill and the new Companies Bill will not be taken up in the Budget sessi...

New Delhi, May 16: The crucial Insurance Regulatory Authority (IRA) Bill and the new Companies Bill will not be taken up in the Budget session of Parliament. The government has also decided against taking up the new Income Tax Bill, the draft of which was prepared at breakneck speed by former finance minister P Chidamabram. However, finance ministry sources pointed out the government proposes to discuss the Foreign Exchange Management Bill (FEMA) and Proceeds of Crime and Money Laundering Prevention Bill in the Budget session beginning on May 27.

With the decision of the government to drop IRA Bill from the list of legislative business of the Budget session, it has become more or less clear that status quo on the crucial question of opening of the insurance sector will be maintained. It may be recalled that former finance minister Chidamabram tried his level best to get the IRA bill passed in the Lok Sabha but the bill had to be withdrawn at the last moment as the United Front government failed to securerequisite majority for the passage of the bill in the Lower House.

Similarly, the new Companies Bill, which sought to replace the existing Companies Act, is also missing from the legislative business of the government. The bill was introduced in Rajya Sabha in the last monsoon session after much debate in public. Likewise the working draft of the New Income Tax bill was circulated for wide public debate. But that too does not figure in the list of legislative business of the government.

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Apart from the regular Budget, the bills to be pursued by the finance ministry in the forthcoming budget session also include the Export-Import Bank of India (amendment) Bill (to increase the authorised capital of the Exim Bank from Rs 500 crore to Rs 2000 crore), Sick Industrial Companies (Special provision) bill (to deal with industrial sickness more effectively) and the Small Industries Development Bank of India (amendment) bill (to provide flexibility to Sidbi for investment of its surplus funds).

The proposedForeign Exchange Management Bill seeks to repeal and replace FERA 1973 and the Money Laundering Bill, which will be simultaneously taken up, shall provide for confiscation of the proceeds of crime and to declare the act of money laundering to be a criminal offence.

The government also proposes to pursue a Constitution Amendment Bill to give effect to the recommendations of the 10th Finance Commission regarding alternative scheme of devolution of central taxes. The devolution of tax proceeds as per the revised formula suggested by tenth Finance Commission could not be implemented because of the failure of the last government to get requisite amendments passed by Parliament. Now with the passing of the amendments the central government will be rquired to part with larger share of tax proceeds in favour of the states.