Govt mulls more reforms

 Sources close to the developments told Business Standard that the government might make its first moves in this direction soon after it settled down with its new political partner, the Samajwadi Party (SP). The Left formally withdrew support to the government today and the SP, with 39 seats in Parliament, extended it.  A trust vote is slated for July 21. Though the UPA is still a little short of the required numbers for a comfortable majority, the stock markets appear to have cheered the renewed prospects of political stability with the new alignments in the government.
 

DOES UPA HAVE THE NUMBERS?
All India Majlis-e-Ittehadul Muslimmen (AIMIM)	1
Jammu & Kashmir People's Democratic Party (J&KPDP)	1
Muslim League Kerala State Committee (MLKSC)	1
Republican Party of India (A) (RPI-A)	1
Mizo National Front (MNF)	1
Sikkim Democratic Front (SDF)	1
Total UPA MPs	270
Minus rebels	6
Committed MPs	264
The vote gap (possible from TRS, NPF)	8

 
Today's developments have raised the sense of expectation in government and industry circles that Prime Minister Manmohan Singh, along with key ministers like Finance Minister P Chidambaram and Commerce Minister Kamal Nath, will be able to finally deliver on their earlier promises.  Rajya Sabha MP and Ficci President Rajeev Chandrasekhar feels that with political crisis over, the inertia in governance over the past two or three months will end. "Hopefully, the government will come back to address pressing issues on the economic front, now that the political crisis is past. And, if in the process it passes pending legislation, it would be a good thing," he said.  The fact that less than a year is left for general elections is, however, considered a constraint. "Frankly, it is election year and I do not think that the government will have the time to focus on too many reforms," said a leading industrialist.  The SP's economic demands over the past few days, as articulated by General Secretary Amar Singh, have also led to fears that corporate rivalries and interests may extend from the boardroom to government decision-making.