Friday, March 12, 2010

long-term political gains

While Trinamool Congress and DMK had bought the logic then, they came out openly against the decision once the recommendations were implemented. They were in favour of reduction of service tax and excise duty. The fuel price hike will affect their two core groups, farmers and the middle class. While the former will be affected by the rise in the price of diesel, the increase in transportation costs will hit the latter. Transportation cost escalation might fuel a further rise in the prices of essential commodities.

Talking to TSI, Trinamool leader Dinesh Trivedi said that while the railway minister kept diesel transportation out of the ambit of service tax, the finance minister failed to do his bit. This, according to Trivedi, was not in accordance with the sentiments of the allies.

The same goes for DMK, whose leader and Tamil Nadu CM M. Karunanidhi shot a letter to the PM merely three hours after the Budget was presented. A. Raja, Union communications minister, wasted no time in personally delivering it to the PMO.

DMK is peeved as it could find itself on sticky ground in the Assembly elections due next year. However, sources claim that there is another reason behind this response. The PMO is apparently not happy with M.K. Alagiri and the way he runs his ministry. He has been told so in as many words by the PMO, but he has refused to mend his ways. DMK is now using this issue to settle scores and ensure that Alagiri remains a part of the ministry.

This was also the first time in India‘s parliamentary history that the entire Opposition staged a walkout in the middle of the Budget presentation. There were two flanks that were particularly active. The command of the UPA allies was with Mulayam Singh while the united Opposition was spearheaded by leader of the Opposition in the Lok Sabha, Sushma Swaraj. Swaraj had called a joint meeting of the Opposition in the office of the BJP parliamentary party prior to the Budget session. All matters related to floor coordination were discussed there. It was decided how, and when, the Opposition would corner the government over the price rise issue. It was also decided that some Opposition parties such as JD(U) would raise the matter of corruption and then the entire Opposition would walk out of the House.

From the government side, parliamentary affairs minister Pawan Bansal was in total command. He had personally called Mulayam and Lalu to request that if at all they plan to protest against the move by the government, they should do so in a way that would not unduly embarrass the government. However, Lalu, for own sweet reasons, not only came out openly to support the allegations levelled by Swaraj but also made it amply clear that his party would support the Opposition in the mass movement against price rise.
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Source :
IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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