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Budget: Will political uncertainty affect reforms?

Budget: Will political uncertainty affect reforms?

In the aftermath of the Rail Budget fiasco, it remains to be seen how the allies will react when Pranab Mukherjee presents the Budget in Parliament on Friday.

New Delhi: It is the D-day and the big question remains. Will political uncertainty make Finance Minister Pranab Mukherjee bid goodbye to controversial reforms like FDI in retail and fuel price hikes?

In the aftermath of the Rail Budget fiasco, which saw Railway Minister Dinesh Trivedi having to face flak within hours of presenting the budget, mainly because his party chief Mamata Banerjee did not agree with the train fare hikes, it remains to be seen how will the allies and Opposition react when Mukherjee presents his 7th Budget in Parliament on Friday.

Certain key reforms like the FDI in retail has faced severe opposition in the past from allies and Opposition alike.

Experts feel political pressure will prevent the Finance Minister from taking bold decisions in Budget 2012. Speaking to CNN-IBN, Economic researcher Srivatsa Krishna said, "I'm not positive about the Finance Minister taking bold decisions and going for controversial reforms this Budget."

Reforms: Who opposes what

GST: BJP, AIADMK

Retail FDI: TMC, DMK, NDA

Pension Reforms: TMC, Left

Banking Reforms: BJP gives qualified support

Aadhar: BJP

Fuel price hike: UPA Allies, Opposition

Air India Privatisation: Ruling coalition, Opposition

Railway fare hike: TMC, NDA, Left

Coal Denationalisation: Ruling coalition, Opposition

The Goods and Services Tax (GST) has been in a political freeze. It was supported by the BJP when it was in power. However, the party opposes it now. It says the taxes will "erode state autonomy". The bill is unlikely to become law before 2013.

first published:March 16, 2012, 08:05 IST