BJP obliged to support key reforms bills: Chidambaram

New Delhi, July 20 (PTI) Finance Minister P. Chidambaram
has expressed confidence over pursuing the reforms agenda,
saying B.J.P. (Bhartiya Janata Party) is "obliged" to support
certain key financial sector legislations.

"I think they are obliged to support because a B.J.P.
member is the Chairman of the standing committee (on finance).
I think the B.J.P. is obliged to support bills which it had
supported in the standing committee," he told PTI.

The standing committee on finance is at present headed by
B.J.P. member Ananth Kumar.

The key pending bills which the U.P.A. government could
not pursue during the first four years because of the
objections from the Left parties include Banking Regulation
Amendment Bill, PFRDA Bill, Insurance Laws Amendment Bill.

Pointing out that the Left had objections to certain
bills which are still pending in Parliament, Chidambaram said,
"the Left will continue to object to those bills. It is
possible that they may even vote against some clauses of those
bills. So we need to know who else will support those bills."

Though the government had not drawn an agenda at this
stage, he said, "But this is my sincere hope that we can draw
up an agenda. That agenda will include some of the pending
bills and some of those bills will be passed in the remainder
of the term of this government."

Chidambaram said he would make every effort to find
support for the remaining agenda, which include three
important bills of the Finance Ministry and certain other
legislations.

The Finance Minister further said the Left parties which
had supported the Government in the last four years, had
opposed critical pieces of legislations and have withdrawn
support.

"But now we have to move forward. As we move forward, we
have to ask ourselves, what is the remaining agenda, what
parts of the remaining agenda are implementable and who is
willing to support us on that remaining agenda," he said.

Over a year back, the Finance Minister had asked for
"political space" for financial sector reforms which would
trigger higher growth.

"In a coalition, it is very important that the political
space is given to the government to undertake further economic
reforms. There are many matters which are pending or are in
pipeline. I wish and hope that we are given the political
space to push through reforms," he had said.

Chidambaram had said financial sector is the heart of the
economy and unless financial sector reforms are completed it
will be difficult to sustain high growth.

Among the three bills, Banking Regulation Amendment
Bill relates to enhancing voting rights of foreign players in
proportion to their stake in private sector banks, while
Insurance Laws Amendment Bill includes hiking of cap on
foreign stake in insurance firms to 49 per cent from the
current 26 per cent.

The Pension Fund Regulatory and Development Authority
(PFRDA) bill is for allowing private sector participation in
the pension sector and giving statutory powers to the interim
regulator.

Referring to the impact of political instability on the
economy, Chidambaram said though it has some effects on
the stock markets, "I do not think it has caused inflation.
May be, it has not allowed inflationary expectations to die
down."

He further said lowering of inflationary expectations
would have happened sooner, if political instability had not
gripped the country.

When asked whether it was correct to blame the Finance
Minister for rising prices, Chidambaram said, "that is a part
of our job. If we do not want criticism, we should not take up
the job."

Quoting Nobel laureate, Joseph Stiglitz, he said, "Do not
blame Finance Ministers if there is inflation, do not give
credit to them if inflation moderates."

There is no finance minister in the world who is beyond
the pale of criticism, he said, adding even Manmohan Singh
faced criticism when he was the finance minister.