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Why the monsoon session of parliament must pass economy related bills?


Why the monsoon session must pass economy related bills?
India's economic data is getting worse, with the latest being private sector output contracting for the first time since 2009. With interest rates rising, growth rates dipping to a decade low, investment climate getting worse and rupee hitting a lifetime low, there's more urgency to pass the crucial economy related bills now, then ever before.
Despite 44 bills being listed to be passed in 16 days the government must pursue the passage of economy related bills in parliament with great urgency.

The first day of parliament has been a wash out, leaving just 43 days now, unless the government decides to extend the monsoon session.


Key bills like GST, if passed would help boost GDP growth rates, while bills like the Land Acquisition Bill would encourage investment in the industrial sector, while the Insurance Amendment Bill for raising FDI limit for foreign companies could help bring in Dollars, at a time when the rupee is sinking.

In early April, Finance Minister P Chidamabaram expressed optimism that the Insurance Amendment Bill, which seeks to raise FDI cap in the sector to 49 percent, will be passed. One was not sure on what basis he made the commitment, given that parliament has not functioned at all. With BJP expressing reservations over certain clauses the passage of the Bill looks difficult in current form.

On the Land Reforms Bill, the government did manage a consensus with other political parties. But, the hope is that parliament must function and the ruckus of the first day, must not spill over. The Land Reforms Bill would make land acquisition easier and given fair land rates to farmers and also helped industrialisation.

A landmark reform, the Goods and Services Tax was one of the most urgently needed tax reforms. One must admit that Chidambaram has done his utmost even meeting with Chief Minister's of the States to agree on revenue sharing, but, like other bills this is also unlikely to see the light of day.


"They will be ready and I will introduce the official amendments in the Parliament towards the end of the monsoon session and then it is for Parliament to pass it," Chidambaram said at a press conference in Jaipur last month.

The passage of the above crucial Bills, would be a big boost top the investment climate in the country.

Read more about: gst landreforms bill
Story first published: Tuesday, August 6, 2013, 8:51 [IST]
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