Finance Minister says India's ruling UPA coalition committed to reforms

Washington, Apr 21 (PTI) Asserting that the Indian government is committed to economic reforms, Finance Minister Pranab Mukherjee has said it is now time for taking some hard decisions and expressed confidence that three key legislations on pension, banking and insurance will be passed this year. Speaking at a Washington-based think-tank on Friday, Mukherjee, however, acknowledged that there were pressures of coalition democracy and that some reform measures had slowed down over last year. India at present is ruled by a coalition - United Progressive Alliance - of parties led by Congress Party. Rejecting the perception of policy paralysis, he said the government has, in fact, initiated the process of legislative and administrative changes on a number of issues that would benefit the economy. "We are now at a juncture when it is inevitable to take some hard decisions. And this has been our approach, as I outlined in the proposals for the Union (India Government) Budget 2012-13 recently," he said. He was responding to questions at the Peter G Peterson Institute for International Economics, which had organised an event in association with the Confederation of Indian Industry (CII). "... thanks to the pressures of coalition democracy, some reform measures had slowed down over the last year, but we have taken several steps in the past months to shore-up the short and medium term growth prospects," Mukherjee said. In fact on the legislative front, Mukherjee said, the government has already completed the preliminary legislative process for Pension Fund Regulatory Act, Insurance Act and Banking Amendment Act. "These three acts, I do hope would get legislated in this calendar year. If not in this parliamentary session, then the next session," Mukherjee said. Referring to the difficulties given the coalition era, he said: "Of course we have to persuade various stake holders including State governments. "If we could do so perhaps GST (a single, all-India Goods and Services Tax) and the constitution amendment necessary to implement GST would be possible to get it through this or the next session of the Parliament and thereafter to be ratified by minimum 15 state assemblies before the end of the year." On the issue of direct taxes, he said he was confident that it would be implemented from next financial year, after the laws being passed by the next session of the Parliament. "On tax reforms, direct tax would be operationalised from the next financial year (beginning April 1, 2013)." "In respect of indirect taxes the most important decision to be taken to implement the GST constitutional amendment that may be possible within this calendar year," Mukherjee said in response to a question. PTI