BJP obliged to support key reforms bills: Chidambaram
Finance minister P Chidambaram has expressed confidence over pursuing the reforms agenda, saying BJP is "obliged" to support certain key financial sector legislations.
By PTI |
NEW DELHI: Finance minister P Chidambaram has expressed confidence over pursuing the reforms agenda, saying BJP is "obliged" to support certain key financial sector legislations.
"I think they are obliged to support because a BJP member is the Chairman of the standing committee (on finance). I think the BJP is obliged to support bills which it had supported in the standing committee," he said.
The standing committee on finance is at present headed by BJP member Ananth Kumar.
The key pending bills which the UPA government could not pursue during the first four years because of the objections from the Left parties include Banking Regulation Amendment Bill, PFRDA Bill, Insurance Laws Amendment Bill.
Pointing out that the Left had objections to certain bills which are still pending in Parliament, Chidambaram said, "The Left will continue to object to those bills. It is possible that they may even vote against some clauses of those bills. So we need to know who else will support those bills."
The Finance minister further said the Left parties which had supported the Government in the last four years, had opposed critical pieces of legislations and have withdrawn support.
"But now we have to move forward. As we move forward, we have to ask ourselves, what is the remaining agenda, what parts of the remaining agenda are implementable and who is willing to support us on that remaining agenda," he said.
Over a year back, the Finance Minister had asked for "political space" for financial sector reforms which would trigger higher growth.
"In a coalition, it is very important that the political space is given to the government to undertake further economic reforms. There are many matters which are pending or are in pipeline. I wish and hope that we are given the political space to push through reforms," he had said.
Chidambaram had said financial sector is the heart of the economy and unless financial sector reforms are completed it will be difficult to sustain high growth. Among the three bills, Banking Regulation Amendment Bill relates to enhancing voting rights of foreign players in proportion to their stake in private sector banks, while Insurance Laws Amendment Bill includes hiking of cap on foreign stake in insurance firms to 49% from the current 26%.
The Pension Fund Regulatory and Development Authority (PFRDA) bill is for allowing private sector participation in the pension sector and giving statutory powers to the interim regulator.
Referring to the impact of political instability on the economy, Chidambaram said though it has some effects on the stock markets, "I do not think it has caused inflation. May be, it has not allowed inflationary expectations to die down."
He further said lowering of inflationary expectations would have happened sooner, if political instability had not gripped the country.
When asked whether it was correct to blame the Finance Minister for rising prices, Chidambaram said, "that is a part of our job. If we do not want criticism, we should not take up the job."
Quoting Nobel laureate, Joseph Stiglitz, he said, "Do not blame Finance Ministers if there is inflation, do not give credit to them if inflation moderates."
There is no finance minister in the world who is beyond the pale of criticism, he said, adding even Manmohan Singh faced criticism when he was the finance minister.
"I think they are obliged to support because a BJP member is the Chairman of the standing committee (on finance). I think the BJP is obliged to support bills which it had supported in the standing committee," he said.
The standing committee on finance is at present headed by BJP member Ananth Kumar.
The key pending bills which the UPA government could not pursue during the first four years because of the objections from the Left parties include Banking Regulation Amendment Bill, PFRDA Bill, Insurance Laws Amendment Bill.
Pointing out that the Left had objections to certain bills which are still pending in Parliament, Chidambaram said, "The Left will continue to object to those bills. It is possible that they may even vote against some clauses of those bills. So we need to know who else will support those bills."
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Though the government had not drawn an agenda at this stage, he said, "But this is my sincere hope that we can draw up an agenda. That agenda will include some of the pending bills and some of those bills will be passed in the remainder of the term of this government." Chidambaram said he would make every effort to find support for the remaining agenda, which include three important bills of the Finance Ministry and certain other legislations.The Finance minister further said the Left parties which had supported the Government in the last four years, had opposed critical pieces of legislations and have withdrawn support.
"But now we have to move forward. As we move forward, we have to ask ourselves, what is the remaining agenda, what parts of the remaining agenda are implementable and who is willing to support us on that remaining agenda," he said.
Over a year back, the Finance Minister had asked for "political space" for financial sector reforms which would trigger higher growth.
"In a coalition, it is very important that the political space is given to the government to undertake further economic reforms. There are many matters which are pending or are in pipeline. I wish and hope that we are given the political space to push through reforms," he had said.
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Chidambaram had said financial sector is the heart of the economy and unless financial sector reforms are completed it will be difficult to sustain high growth. Among the three bills, Banking Regulation Amendment Bill relates to enhancing voting rights of foreign players in proportion to their stake in private sector banks, while Insurance Laws Amendment Bill includes hiking of cap on foreign stake in insurance firms to 49% from the current 26%.
The Pension Fund Regulatory and Development Authority (PFRDA) bill is for allowing private sector participation in the pension sector and giving statutory powers to the interim regulator.
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Referring to the impact of political instability on the economy, Chidambaram said though it has some effects on the stock markets, "I do not think it has caused inflation. May be, it has not allowed inflationary expectations to die down."
He further said lowering of inflationary expectations would have happened sooner, if political instability had not gripped the country.
When asked whether it was correct to blame the Finance Minister for rising prices, Chidambaram said, "that is a part of our job. If we do not want criticism, we should not take up the job."
Quoting Nobel laureate, Joseph Stiglitz, he said, "Do not blame Finance Ministers if there is inflation, do not give credit to them if inflation moderates."
There is no finance minister in the world who is beyond the pale of criticism, he said, adding even Manmohan Singh faced criticism when he was the finance minister.
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