FM vows to push ahead with reforms

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New Delhi, Jul 31 : Union finance minister P Chidambaram on Thursday said the UPA government will carry out all reform measures that do not require parliamentary approval. At the same time, he asserted that the three overarching Bills for financial sector reforms—the Banking Regulation (Amendment) Bill, 2005; the Insurance Bill seeking to raise the FDI cap from 26% to 49% and the Pension Fund Regulatory and Development Authority Bill, 2005—would be passed by Parliament within the government’s term.

“We will continue to take executive action to push reforms. When we reassemble in Parliament… we can return to legislative reforms,” the finance minister said. While some of the reforms can be effected by just an executive order, the BJP’s decision not to co-operate with the government on economic reform bills has put a question mark on the prospects of the rest.

However, Chidambaram indicated that the BJP’s present stance could be due to the tempers that have been running high since the dramatic trust vote in Parliament this month. “Once the tempers cool down, I am sure that the leadership of parties will prevail upon their members to support key financial bills, including insurance, banking regulation and pension bills,” the finance minister said at a book release function in the Capital.

Promising to make progress on the three bills related to banking, pension and insurance, Chidambaram said, “Each of these bills has been held up by disagreement on just one clause. I assure you that I will reach out to every section of Parliament and rally their support for passage of the bills.”