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Government to seek passage of 16 key economic legislations
November, 22nd 2011

Amid concerns of policy paralysis expressed by a section of industry, the government will seek passage of 16 key economic bills in the winter session of Parliament starting tomorrow, to give a clear signal that it is moving ahead with the second generation financial reforms.

The long-pending Pension Fund Regulatory and Development Authority Bill (PFRDA), which will pave the way for 26 per cent foreign investment and will encourage the private sector participation in the pension sector, is among the 16 economic bills.

The Direct Taxes Code Bill and the Goods and Services Tax Bill, are unlikely to be taken up in the month-long session as the government has not received reports of the Parliamentary Standing Committee.

The Insurance Bill which seeks to raise the foreign direct investment in the insurance sector from 26 per cent to 49 per cent is also pending with the Committee headed by senior BJP leader and a former Finance Minister Yashwant Sinha. These bills are considered important for the next generation reforms and the government has been making requests to the Parliamentary panel to expeditiously complete the work. The government needs to take the Opposition parties on board, particularly for the GST since it would require two- third majority in both the Houses of Parliament and ratification by at least half of the state assemblies.

In the recent past, a section of India Inc has blamed the government for inaction on policy front, especially at a time when efforts were needed to fight slow down and combat the impact of the global crisis on domestic economy. India started the economic reforms in 1991 when the country faced critical foreign exchange problems.

 
 
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