Opinion Govt reforms hopes rest on convincing BJP
The government took more than a calculated risk in pushing ahead with the second round of big-ticket reforms on FDI in insurance and pension,because,plain and simple
The government took more than a calculated risk in pushing ahead with the second round of big-ticket reforms on FDI in insurance and pension,because,plain and simple,if the BJP does not back the legislative proposals approved by the Union Cabinet,they are unlikely to pass muster in Parliament.
No categorical assurance has been given by the BJP so far,yet the governments strategy rests on the principal opposition party supporting the legislations on the ground that it cannot afford to vote against reforms initiatives. The BJP,which hopes to replace the UPA at the Centre,is after all not so different than the Congress when it comes to economic reforms.
Pointing out that the Congress too had set aside political differences and backed some of the NDAs economic initiatives in larger national interest,a senior Cabinet minister said: We supported the Fiscal Responsibility and Budget Management Act that the NDA government moved. We also backed introduction of VAT. Likewise,we are hopeful that the BJP will support the pension and insurance Bills, he said.
BJP leaders concede that they will find it difficult to oppose the legislations,the only way being sticking to the recommendations of the Standing Committee on Finance chaired by its senior leader Yashwant Sinha. And there,significantly,lies the crux. The panel had recommended that FDI in insurance be maintained at 26 per cent,while the government has called for 49 per cent FDI.
However,Finance Minister P Chidambaram remains optimistic. At a Cabinet meeting last week,he admitted to colleagues that there was no assurance from the BJP but he hoped they would support the measures.
In the run-up to the Winter Session of Parliament,more parleys can be expected between government representatives and Opposition leaders.
Swaraj is an assistant editor based in Delhi
swaraj.thapa@expressindia.com
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