With the model code of conduct kicking in, there is a big question mark over several key economic decisions such as foreign direct investment, restoring enhanced power to capital market regulator SEBI and relaxing rules for domestic airlines.

This is evident from the fact that the Cabinet meeting scheduled for Thursday has been postponed and no fresh date set.

News of the meeting being cancelled came within hours of Finance Minister P Chidambaram saying that Cabinet meetings would take place right up to the end (of the tenure). The Government’s term ends on May 31.

Once the model code of conduct comes into effect, the ruling party cannot take any policy decision. This is to ensure a level playing field for all. However, the Government of the day can take some necessary decisions in the interest of the general public with the permission of the Election Commission.

At the same time, decisions are mainly based on policies announced earlier.

Key pieces of economic legislation on the Direct Taxes Code, Goods and Services Tax and Micro-Finance are among the 68 Bills that will lapse with the end of the 15th Lok Sabha, on May 31.

There were inter-ministerial differences on the FDI proposal related to the construction sector, delaying a decision. There was no controversy on the proposal related to FDI in Railways, yet the Cabinet could not take it up.

SEBI ordinance delayed Amidst the noise over anti-graft ordinances, critical ordinances such as the one giving more power to SEBI got lost.

The previous ordinance lapsed in January and the Bill in lieu of that could not be taken up during the extended winter session, which ended on February 21.

Now, the ordinance can be re-promulgated only after the Cabinet takes a decision.

Gold imports Considering the political sensitivity, it is not clear whether the Government will take a decision on the gold import duty.

Chidambaram has said the Government will revisit the duty only after the Current Account Deficit figures become clear.

Banking licences There is a possibility that the process of issuing new banking licences will not be affected due to the code of conduct; according to Chidambaram, this is a normal duty of the banking regulator, the RBI.

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