Will adverse Bihar verdict upset BJP's reforms applecart?
The exit polls are buzzing with various permutation and
combinations over who will win, but the question that reigns on experts' mind
about what the verdict could mean for the ruling BJP government's reforms
agenda.
The high-decibel Bihar assembly elections concluded today
with a record turnout of 57 percent this year. The exit polls are buzzing with
various permutation and combinations over who will win, but the question that
reigns on experts' mind about what the verdict could mean for the ruling BJP
government's reforms agenda.
Some believe that the vitriolic environment that was created in the run-up to the elections, what with its castiest, religious and personal overtones flying thick and fast, all it do is harden the stance of BJP's opposition into not ceding any ground on contentious reformist issues.
For instance, the government will need as many 'ayes' as possible, even from other party MPs, when the historic goods and services tax is put to vote in the Winter Session of Parliament. But opposition parties may use it as a stick to beat the government with. This could worsen were the BJP were to lose in the Bihar elections, as some polls are indicating.
"Getting bills passed in Rajya Sabha and Lok Sabha in the Winter Session will become difficult given the political mood that has been created by kind of decisive campaigns from both sides," says AK Bhattacharya, Editor, of the Business Standard tells CNBC-TV18. "Politics is not about numbers, but the kind of mood that you have (has been) generated through campaign," he says, adding that consensus-building is a much required tool in real-politick.
However, others believe that the central government has deftly shifted a lot of action out of the legislative arena into the executive one -- in which Parliamentary approval is not required to push certain policies.
For instance, a few months back, the government had come out with the Indradhanush, an initiative aimed at reforming PSU banks. Today, it announced UDAY, a financial restructuring package for the struggling state power distribution companies.
"None of these reforms will need approval from the Parliament," Bhattacharya says.
Some believe that the vitriolic environment that was created in the run-up to the elections, what with its castiest, religious and personal overtones flying thick and fast, all it do is harden the stance of BJP's opposition into not ceding any ground on contentious reformist issues.
For instance, the government will need as many 'ayes' as possible, even from other party MPs, when the historic goods and services tax is put to vote in the Winter Session of Parliament. But opposition parties may use it as a stick to beat the government with. This could worsen were the BJP were to lose in the Bihar elections, as some polls are indicating.
"Getting bills passed in Rajya Sabha and Lok Sabha in the Winter Session will become difficult given the political mood that has been created by kind of decisive campaigns from both sides," says AK Bhattacharya, Editor, of the Business Standard tells CNBC-TV18. "Politics is not about numbers, but the kind of mood that you have (has been) generated through campaign," he says, adding that consensus-building is a much required tool in real-politick.
However, others believe that the central government has deftly shifted a lot of action out of the legislative arena into the executive one -- in which Parliamentary approval is not required to push certain policies.
For instance, a few months back, the government had come out with the Indradhanush, an initiative aimed at reforming PSU banks. Today, it announced UDAY, a financial restructuring package for the struggling state power distribution companies.
"None of these reforms will need approval from the Parliament," Bhattacharya says.
Former chief economic advisor Arvind Virmani also blames the
opposition party for delaying tactics and says the Congress's may continue its
disruptive strategy - something that it has been accused of recently.
"The key issue in the Rajya Sabha is what will be Congress’s behavior,
which might not be very positive,” he says.
Happy Investing
Source:Moneycontrol.com
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