Narendra Modi’s and the NDA’s parliamentary stint will begin in right earnest with the budget session, which is slated to begin on July 7 and conclude on August 14. "The session will have 28 sittings and 168 working hours. Since the Standing Committees for various ministries are yet to be constituted, the demands for grants for various ministries will be passed by both the houses by July 31 after discussion in parliament instead of the committees," Ms Mahajan, the speaker of the 16th Lok Sabha, said after a luncheon meeting of political parties on Saturday.
There is no leader of opposition designated as yet and the NDA is reluctant to grant that status to the leader of the single largest party in the Lok Sabha, the Congress, as the rules stipulate that the party (not the formation) concerned must have a minimum of 10 percent of the seats of the Lok Sabha in its kitty. Viz. 55 while currently it has 10 short of that magic figure. The Congress is pressing for the same through back channels on the basis that it is the single largest party and also heads the largest opposition formation, though it has yet to make a formal demand in this regard. Reports say that it is also considering moving the judiciary on the matter for an interpretation of the rule that the NDA is quoting to deny them the privilege. The outcome of this wrangling is still not clear. In fact, the speaker steered clear of all questions on the issue of granting leader of opposition status to the Congress, saying the meeting she had convened was to discuss the business before the house. This indicates reluctance on the part of the government to give in to the Congress demand.
In the meanwhile the BJP is sitting comfortably in the Lok Sabha, with 280 seats plus its allies (SAD – 4, Shiv Sena – 18 and the TDP – 16), but will struggle to cough up the numbers in the Rajya Sabha where they have 43 seats as compared to the INC which has 68. Even in combination with their allies, they will require deft political management and the cooperation of the UPA to push their legislative agenda through.
The 15th Lok Sabha could successfully push through only 60 percent of the bills it introduced, for a variety reasons – they didn’t have the numbers in the Lok Sabha, especially after the TMC departed from their fold early on in the life of UPA II, and they didn’t have the numbers in the Rajya Sabha. Issue based support was a non starter, as political parties took diametrically opposing stances, and most of all the BJP eyeing political gains, disrupted parliament time and again over issues they perceived to be politically correct and morally right.
In the end their tactics, while possibly damaging to the economy, proved their strategy right with the electorate returning them to parliament with a thumping majority. But the hard work starts now – they have to repair an economy that has been damaged by international happenings and local paralysis, caused in part by a strident and uncooperative opposition, a disrupted parliament and deteriorating center state relations that stalled the biggest economic legislation till date – the GST bill.
The economy has just started picking up and the challenge will be to give a boost to that growth in an atmosphere in which the Congress is likely to take the fight to the government – they have already threatened to move an adjournment motion on the subject of Inflation. The divided opposition is likely to act as one on the all round price rise – from fuel and energy to railway fare and onions. There are also other issues that are agitating the minds of members - the plight of the Tamil fishermen in the Seas of Tamil Nadu and Indians in general in the conflict torn Iraq.
The government on the other hand is keen to demonstrate its consensus approach espoused by Narendra Modi in his motion of thanks to the President at the special session of parliament, but the proof of the pudding is always in the eating and a confrontationist and suspicious approach can already be seen in not allowing UPA appointees to continue in their positions either in the bureaucracy or in public offices. "Government is willing to give full time to discuss any issue. They are ready to discuss every issue. Different suggestions have come and they will be decided after the meeting of the Business Advisory Committee," Ms Mahajan said after the meeting.
Parliamentary Affairs Minister Venkaiah Naidu said the government is ready for a discussion on any issue and appealed to the opposition to "cooperate" to ensure that the decorum and dignity of parliament is maintained and the house business was carried out smoothly. The government also intends to bring bills to replace the Telecom Regulatory Authority of India or TRAI (Amendment) Ordinance, 2014 and the Ordinance with respect to Polavaram project under Andhra Pradesh Reorganization (Amendment) Ordinance, 2014.
The TRAI (Amendment) Ordinance cleared on May 28 ensured that the government could appoint Nripendra Misra as Principal Secretary to the Prime Minister. The Andhra Pradesh ordinance was promulgated on May 29, ahead of the official division of the state on June 2. Mr. Naidu also said that Commerce Ministry would be bringing a bill on the National Institute of Design. Various pending bills will be reviewed and priority will be fixed on bringing them before Parliament in coordination with Opposition members, he added.
In an innovation introduced in the house, Ms Mahajan, the speaker, also said that the Lok Sabha proceedings in the session will have a new feature where the picture of members speaking will be shown on the screen to enable all members sitting even on front benches to see those speaking from the rear benches. Back benchers too will now have an incentive to attend and speak, and contribute to nation building.
The Railway Budget:
The Rail budget will be contentious. Tempers have already risen due to the sudden pre budget railway freight rate and passenger fare hikes. The former is likely to impact inflation and take prices to a new high.
With the monsoon likely to be late and deficient in some crucial parts of India, the Railway minister will have to tackle a number of issues in the Rail Budget, - the rising costs of its bureaucracy created by multiplication of divisions, rising staff costs despite of implementation of technology initiatives, modernization of its stock, lines, railway stations and safety practices and most of all the hygiene on its trains. All of this costs money and the challenge is to find a way to get that money without taxing the public further, and spend it on the right things.
The Railway Ministry has been working on these issues and it is learnt, has proposed a list of plans to be presented during the Rail Budget session for the development of the railways. These plans provide for better amenities to citizens – redesigned coaches, with improved furnishings and the introduction of a house keeping scheme in coaches. Reports say that around 12 coaches will be re-manufactured with new interior furnishings as an ‘Anubhuti’ pilot project. Hygiene is expected to improve with the application of and monitoring of mechanized cleaning of coaches takes. Comprehensive pest and rodent control treatment will be given top priority. Officials will also be appointed to address problems related to hygiene like maintaining clean toilets and keeping coaches spick-and-span. Railways also plan to manufacture about 4000 coaches including 700 LHB coaches.
Unmanned Railway crossings which account for about 40% of the Railway mishaps are also a matter of concern as is the security of Passengers. A proposal to install X-ray systems along the tracks to detect faulty parts in trains is expected to form a part of the budget while a new RPF personnel academy for advanced training, is also likely to be proposed in the Rail Budget 2014-15, CCTV, X-ray machines for baggage clearances and other gadgets are also a part of the Railway Budget.
M. Kharge, the previous railway minister, who replaced Pawan Bansal after controversy surrounded him, is now the Leader of the Congress Party in the Lok Sabha and knows a thing or two about the situation in the Railways and will be in a position to challenge his state mate Sadananda Gowda when he presents his budget on the 8th of July.
The General Budget:
The stock market and inflation, both are booming. External CAD is down, but then it was down before the election results were announced. The Fiscal and revenue deficits remain a challenge as does liquidity in the economy, a key input for growth, but also a key driver of inflation. Hoarding is rampant in anticipation of a failing and delayed monsoon and the Middle East is fighting itself, leading to rising fuel prices. Domestic consumption is also a concern
Consequently, finance minister Arun Jaitley's maiden Budget on Thursday is expected to be a tightrope walk of trying to meet demands for tax sops especially from the middle class and pursuing fiscal prudence to spur investment and growth. Acche Din aayenge, ya nahi is now dependent one man and his budget.
The new aam aadmi, the middle class or the sandwiched class has always borne the brunt of any economic crises, though it must be said, it is the class that most benefits from a high growth rate too. There are high hopes from the new government that it will raise tax slabs and also significantly hike the annual tax exemption limit to provide a much-needed relief to salaried class, which is reeling under the stubbornly high inflation.
The finance minister is also expected to spare a thought for investment, with an
announcement of tax incentives for industry. As a prelude to the Budget, the government has already extended the excise duty concessions for automobile and consumer durable sectors till December. Gold Import duties and relief to farmers to help them tide over the impact of a deficient and delayed monsoon are also on the agenda of the finance minister.
Jaitley will have to pursue the middle path - one of fiscal prudence, rather than give in to populism which he can afford to do with the brute majority that the BJP has at its command. He can afford to leave the populism for when elections are due in five years or the financial position is better, whichever is earlier perhaps. He has already indicated his approach when he said "If you indulge in mindless populism you burden the exchequer, you convert yourself into a high taxation society. It does not work. Therefore, if you have to follow a path of fiscal prudence, (you should) have a certain amount of discipline,"
The start of this Budget session gives rise once again to the hope that, Acche Din will be here soon. However, only time can solve that enduring conundrum of hope and reality.
There is no leader of opposition designated as yet and the NDA is reluctant to grant that status to the leader of the single largest party in the Lok Sabha, the Congress, as the rules stipulate that the party (not the formation) concerned must have a minimum of 10 percent of the seats of the Lok Sabha in its kitty. Viz. 55 while currently it has 10 short of that magic figure. The Congress is pressing for the same through back channels on the basis that it is the single largest party and also heads the largest opposition formation, though it has yet to make a formal demand in this regard. Reports say that it is also considering moving the judiciary on the matter for an interpretation of the rule that the NDA is quoting to deny them the privilege. The outcome of this wrangling is still not clear. In fact, the speaker steered clear of all questions on the issue of granting leader of opposition status to the Congress, saying the meeting she had convened was to discuss the business before the house. This indicates reluctance on the part of the government to give in to the Congress demand.In the meanwhile the BJP is sitting comfortably in the Lok Sabha, with 280 seats plus its allies (SAD – 4, Shiv Sena – 18 and the TDP – 16), but will struggle to cough up the numbers in the Rajya Sabha where they have 43 seats as compared to the INC which has 68. Even in combination with their allies, they will require deft political management and the cooperation of the UPA to push their legislative agenda through.
The 15th Lok Sabha could successfully push through only 60 percent of the bills it introduced, for a variety reasons – they didn’t have the numbers in the Lok Sabha, especially after the TMC departed from their fold early on in the life of UPA II, and they didn’t have the numbers in the Rajya Sabha. Issue based support was a non starter, as political parties took diametrically opposing stances, and most of all the BJP eyeing political gains, disrupted parliament time and again over issues they perceived to be politically correct and morally right.
In the end their tactics, while possibly damaging to the economy, proved their strategy right with the electorate returning them to parliament with a thumping majority. But the hard work starts now – they have to repair an economy that has been damaged by international happenings and local paralysis, caused in part by a strident and uncooperative opposition, a disrupted parliament and deteriorating center state relations that stalled the biggest economic legislation till date – the GST bill.
The economy has just started picking up and the challenge will be to give a boost to that growth in an atmosphere in which the Congress is likely to take the fight to the government – they have already threatened to move an adjournment motion on the subject of Inflation. The divided opposition is likely to act as one on the all round price rise – from fuel and energy to railway fare and onions. There are also other issues that are agitating the minds of members - the plight of the Tamil fishermen in the Seas of Tamil Nadu and Indians in general in the conflict torn Iraq.
The government on the other hand is keen to demonstrate its consensus approach espoused by Narendra Modi in his motion of thanks to the President at the special session of parliament, but the proof of the pudding is always in the eating and a confrontationist and suspicious approach can already be seen in not allowing UPA appointees to continue in their positions either in the bureaucracy or in public offices. "Government is willing to give full time to discuss any issue. They are ready to discuss every issue. Different suggestions have come and they will be decided after the meeting of the Business Advisory Committee," Ms Mahajan said after the meeting.
Parliamentary Affairs Minister Venkaiah Naidu said the government is ready for a discussion on any issue and appealed to the opposition to "cooperate" to ensure that the decorum and dignity of parliament is maintained and the house business was carried out smoothly. The government also intends to bring bills to replace the Telecom Regulatory Authority of India or TRAI (Amendment) Ordinance, 2014 and the Ordinance with respect to Polavaram project under Andhra Pradesh Reorganization (Amendment) Ordinance, 2014. The TRAI (Amendment) Ordinance cleared on May 28 ensured that the government could appoint Nripendra Misra as Principal Secretary to the Prime Minister. The Andhra Pradesh ordinance was promulgated on May 29, ahead of the official division of the state on June 2. Mr. Naidu also said that Commerce Ministry would be bringing a bill on the National Institute of Design. Various pending bills will be reviewed and priority will be fixed on bringing them before Parliament in coordination with Opposition members, he added.
In an innovation introduced in the house, Ms Mahajan, the speaker, also said that the Lok Sabha proceedings in the session will have a new feature where the picture of members speaking will be shown on the screen to enable all members sitting even on front benches to see those speaking from the rear benches. Back benchers too will now have an incentive to attend and speak, and contribute to nation building.
The Railway Budget:
The Rail budget will be contentious. Tempers have already risen due to the sudden pre budget railway freight rate and passenger fare hikes. The former is likely to impact inflation and take prices to a new high. With the monsoon likely to be late and deficient in some crucial parts of India, the Railway minister will have to tackle a number of issues in the Rail Budget, - the rising costs of its bureaucracy created by multiplication of divisions, rising staff costs despite of implementation of technology initiatives, modernization of its stock, lines, railway stations and safety practices and most of all the hygiene on its trains. All of this costs money and the challenge is to find a way to get that money without taxing the public further, and spend it on the right things.
The Railway Ministry has been working on these issues and it is learnt, has proposed a list of plans to be presented during the Rail Budget session for the development of the railways. These plans provide for better amenities to citizens – redesigned coaches, with improved furnishings and the introduction of a house keeping scheme in coaches. Reports say that around 12 coaches will be re-manufactured with new interior furnishings as an ‘Anubhuti’ pilot project. Hygiene is expected to improve with the application of and monitoring of mechanized cleaning of coaches takes. Comprehensive pest and rodent control treatment will be given top priority. Officials will also be appointed to address problems related to hygiene like maintaining clean toilets and keeping coaches spick-and-span. Railways also plan to manufacture about 4000 coaches including 700 LHB coaches.
Unmanned Railway crossings which account for about 40% of the Railway mishaps are also a matter of concern as is the security of Passengers. A proposal to install X-ray systems along the tracks to detect faulty parts in trains is expected to form a part of the budget while a new RPF personnel academy for advanced training, is also likely to be proposed in the Rail Budget 2014-15, CCTV, X-ray machines for baggage clearances and other gadgets are also a part of the Railway Budget.
M. Kharge, the previous railway minister, who replaced Pawan Bansal after controversy surrounded him, is now the Leader of the Congress Party in the Lok Sabha and knows a thing or two about the situation in the Railways and will be in a position to challenge his state mate Sadananda Gowda when he presents his budget on the 8th of July.
The General Budget:
The stock market and inflation, both are booming. External CAD is down, but then it was down before the election results were announced. The Fiscal and revenue deficits remain a challenge as does liquidity in the economy, a key input for growth, but also a key driver of inflation. Hoarding is rampant in anticipation of a failing and delayed monsoon and the Middle East is fighting itself, leading to rising fuel prices. Domestic consumption is also a concernConsequently, finance minister Arun Jaitley's maiden Budget on Thursday is expected to be a tightrope walk of trying to meet demands for tax sops especially from the middle class and pursuing fiscal prudence to spur investment and growth. Acche Din aayenge, ya nahi is now dependent one man and his budget.
The new aam aadmi, the middle class or the sandwiched class has always borne the brunt of any economic crises, though it must be said, it is the class that most benefits from a high growth rate too. There are high hopes from the new government that it will raise tax slabs and also significantly hike the annual tax exemption limit to provide a much-needed relief to salaried class, which is reeling under the stubbornly high inflation.
The finance minister is also expected to spare a thought for investment, with an
announcement of tax incentives for industry. As a prelude to the Budget, the government has already extended the excise duty concessions for automobile and consumer durable sectors till December. Gold Import duties and relief to farmers to help them tide over the impact of a deficient and delayed monsoon are also on the agenda of the finance minister. Jaitley will have to pursue the middle path - one of fiscal prudence, rather than give in to populism which he can afford to do with the brute majority that the BJP has at its command. He can afford to leave the populism for when elections are due in five years or the financial position is better, whichever is earlier perhaps. He has already indicated his approach when he said "If you indulge in mindless populism you burden the exchequer, you convert yourself into a high taxation society. It does not work. Therefore, if you have to follow a path of fiscal prudence, (you should) have a certain amount of discipline,"
The start of this Budget session gives rise once again to the hope that, Acche Din will be here soon. However, only time can solve that enduring conundrum of hope and reality.
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