Reforms may continue to be on the backburner

CHANDIGARH: Punjab government is unlikely to take any step for additional resource mobilisation (ARM) or push reforms during the current financial year as the ruling SAD-BJP combine seems to be in election mode, fighting shy of taking unpopular decisions.
Though the common perception is that Lok Sabha polls would be on schedule next year, yet the ruling combine presumably won't take any chances.Even after having won vote of confidence in the Lok Sabha, the UPA may still go for early polls, some leaders felt.
Argued SAD ideologue and senior minister Kanwaljit Singh, "The euphoria over the nuclear deal can't be stretched beyond three-four months after getting the nod from IAEA. UPA would like to cash on it and may opt for early polls this year itself."
Moreover, "UPA faces a perpetual threat of being voted out in the Parliament over any legislation in coming months as cobbling majority each time may not be possible for the government. So, functioning of the government would
be crippled as it can't push any substantive legislation in the Parliament in the face of opposition from NDA and Left parties," Kanwaljit observed.
Punjab government had put its proposal for ARM measures and fiscal reforms on the back burner till elections to local bodies and Panchayati Raj institutions (PRIs) till June. And now, Lok Sabha poll apprehension is likely to deter it from taking bold initiatives, sources said.
The co-ordination committee of ruling SAD and BJP had actively considered various measures in its meetings but the issue was never broached after January. "There was broad consensus on the issue, but the timing was left to the chief minister," said senior minister and BJP leader Manoranjan Kalia, who rued that the status quo continues even after eight months.
Kalia is convinced that bold initiatives should be taken immediately which would improve the state's finances as these would ensure access to various funds. However, the BJP is reluctant to permit levy of house tax or user charges, arguing that reforms can't be piece-meal and insists that free power to farm sector be withdrawn simultaneously, even if it meant just token power tariff for agriculture sector, for which the SAD is not prepared.
BJP leaders conceded that taxing the urban sector alone, which is their core constituency, would send wrong signals and erode its support base. Hence, the BJP's insistence on reforms in totality.
Senior bureaucrats also admitted that status quo would continue till the Lok Sabha polls. "These are political decisions and only political masters can address these issues," said a senior officer washing his hands off the ARM or reforms or the fallout of fiscal crisis.