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UPA fire-fighting begins, FM tries to placate allies
UPA started the exercise to resolve differences with allies over the Budget amid protest from the Left.
United Progressive Alliance (UPA) on Monday launched a fire-fighting exercise to resolve differences with allies over the Union Budget amid a sharp protest from Left parties that back it from outside.
Finance Minister P Chidambaram began the arduous task of selling his budgetary proposals, at a meeting with UPA allies on Monday, shortly before Parliament reassembled for a discussion of the Budget in both houses.
While the Left stayed away from the UPA's first general body meeting to protest the raising of foreign direct investment (FDI) in key economic sectors, Chidambaram tried to address the grievances of various allies who expressed sector-specific reservations.
The finance minister was believed to have underscored that there was nothing in the Budget not indicated in the common minimum programme that all allies had agreed upon while forming the government.
He also asserted that the Budget reflected the government's aim to accelerate economic growth with a thrust on agriculture and rural development.
Members belonging to the Congress and its allies also brought up the proposal to impose a two per cent education cess that many Indians had responded to with trepidation.
"The main point is that the Budget has not deviated from what had been pledged in the common minimum programme," said a Congress MP, explaining that the process of consultations with allies and ironing out differences "was not over yet".
In the presence of allies like Railway Minister Laloo Prasad (Rashtriya Janata Dal), Agriculture Minister Sharad Pawar (Nationalist Congress Party) and Steel Minister Ram Vilas Paswan (Lok Janshakti Party), the meeting also discussed the Communists' opposition to raising FDI in telecom, insurance and aviation.
The Left decided to stay away from the meeting a day after the Communist Party of India-Marxist (CPI-M) politburo criticised the Budget proposals and vowed to oppose them.
Sounding more critical than the opposition National Democratic Alliance (NDA), the leftists made it clear they would oppose the proposals but would not destabilise the government.
Various allies put forth their own reservations on the education cess, the transaction tax and short-term capital gain tax during the meeting, though the finance minister gave no assurances of any rollback.
Ram Vilash Paswan was reported to have urged a rethink on the excise duty hike on steel from eight per cent to 12 per cent, which would impact the industry and customers.
Other ministers like Sharad Pawar and Praful Patel (Civil Aviation) also have reservations pertaining to their sectors.
Watching the UPA turmoil with satisfaction was the main opposition Bharatiya Janata Party, which has mounted its attack on the government against "tainted" ministers and the summary removal of four governors it had appointed.
While its response to the Budget has been far subdued than that of Left parties, the BJP-led NDA vowed to continue the boycott in Parliament of ministers charged in criminal cases, including Railway Minister Laloo Prasad.
