Allaying apprehensions over the impact of the changing political scenario on policy reforms, Finance Minister P. Chidambaram said he was confident of key legislations being pushed through in Parliament and executive decisions being taken outside.
His remark came a day after key ally DMK withdrew support from the UPA Government over India’s stance on Sri Lanka at the United Nations.
Addressing a press conference, Chidambaram said, “I don’t see us any weaker today (than) what we were yesterday. Yes, it is true one ally has withdrawn support. The Government enjoys majority, the Government will continue to do its duty. The Government will continue to take executive action and the Government will continue to push legislation in Parliament.”
The Government has listed key economic legislations such as insurance and pension Bills for consideration and passage during the ongoing Budget Session. The first part of the session will end on March 22, and the House will re-assemble on April 22.
However, the Government lacks the numbers in Rajya Sabha. In fact, after the withdrawal of support by DMK, the Government may have a tough time in taking up key legislations in the Lok Sabha, as well.
‘Hands on wheels’
The Finance Minister said, “We are in Government. We have a duty to steer the ship even if there is mild storm in the sea. We have our hands firmly on the wheels.” He said he would meet foreign investors and persuade them to invest in India.
Chidambaram is scheduled to meet foreign investors in major financial hubs in Japan, the UAE, Canada and the US in the coming weeks.
Food security
The Finance Minister said the Food Security Bill would be introduced in Parliament and “I am absolutely confident there will be enough support in Parliament to pass the Bill.”
The Cabinet on Tuesday approved amendments in the Bill, under which it proposes to provide foodgrains at subsidised rates to 67 per cent of population.
On executive decisions, Chidambaram said the Cabinet cleared the Food Security Bill and the Empowered Group of Ministers (EGoM) approved disinvestment of SAIL on Tuesday. The Cabinet Committee on Investment is also scheduled to meet later in the day to take stock of and decide on big infrastructure projects.
Fiscal Consolidation
The Finance minister reiterated that the Government would adhere to the fiscal consolidation path unveiled in the Budget.
“The Prime Minister and I have made it clear that we are on the path to fiscal consolidation… We will adhere to whatever we have said in the Budget that in the year 2013-14 fiscal deficit will be brought down to 4.8 per cent,” he said.
He said the sharp fall in equity markets on Tuesday was more a reaction to worries about the bail-out in Cyprus and reaction to the RBI’s monetary policy rather than withdrawal of DMK’s support to the Government.
“There is no political instability,” he added.