After assuring foreign investors, the Government will try to walk the extra mile to get key financial sector and welfare-related legislations approved in the second half of the Budget session of Parliament beginning Monday.
However, there is no official list of Bills to be taken up on priority among the various listed ones during the remaining 13 sittings of Parliament. But considering their importance, the Government is likely to put up five Bills, apart from the Finance Bill. These bills concern food security (Food Ministry), land acquisition, resettlement and rehabilitation (Rural Development Ministry), insurance (Finance Ministry), pension (Finance Ministry) and Forward Contract Regulation Amendment (Consumer Affairs Ministry).
Foreign investors, industry (particularly auto) and commodity exchanges are keenly awaiting Finance Minister P. Chidambaram’s reply on the Finance Bill. While foreign investors are seeking clarity on the provision related to the Tax Residency Certificate, the auto industry is expecting some relaxation on additional excise duty for sports utility vehicles. Commodity exchanges are also eagerly awaiting the fate of the transaction tax proposed on non-agro commodities.
Top priority
Among the legislations, the Food Security Bill is the most ambitious one as it aims to provide fixed quantity of wheat at Rs 3/kg, rice at Rs 2/kg and coarse foodgrains at Re 1/kg to 67 per cent of population. In all probability, this Bill will get top priority, as it can help the UPA Government garner votes in the general elections due next year.
At the same time, going by the result of the all-party meeting held earlier this week, there will also be an effort to get this Bill passed in this session itself.
The insurance and pension Bills are critical for financial sector reforms. Both the Prime Minister and the Finance Minister, during their recent foreign tours, cited extensively about the insurance Bill, which talks about raising foreign investment limit to 49 per cent from 26 per cent. The limit in insurance will be same as the pension sector.
The Forward Contract Regulation Amendment Bill has been long pending. It proposes bank participation in commodity future trading, introduction of instruments such as option and weather products to help farmers, besides strengthening the regulator, the Forward Market Commission.
In the beginning of the Budget session, the Government had listed 16 Bills for introduction, four bills for introduction, consideration and passage and 35 bills for consideration and passage, apart from the financial business.
However, in the first half, both the Lok Sabha and the Rajya Sabha managed to pass just two Bills - the Criminal Law Amendment and the Protection of Women from Sexual Harassment at Workplace - apart from mandatory Budget-related legislations.