A NEW DEAL
1 AFTER 10 YEARS OF BJP MAJORITY GOVERNMENT, THE NDA'S THIRD TERM WILL BE A COALITION GOVT
2 THE FOCUS ON GROWTH AND FISCAL CONSOLIDATION IS EXPECTED TO CONTINUE
3 BIG-TICKET REFORMS ON LAND AND LABOUR MAY NOT TAKE PLACE IMMEDIATELY
4 SPECIAL PACKAGES FOR ANDHRA PRADESH AND BIHAR LIKELY
5 UNION BUDGET 2024-25 TO GIVE POINTERS ON KEY PRIORITIES, NEW ROAD MAP
THERE IS STRENGTH in numbers. Whether it's a corporate boardroom or a nation's Parliament, those who have the numbers can push through their decisions. With an absolute majority for the BJP, the first two terms of the Narendra Modi-led NDA government were marked by major reforms, bold decisions and a steady hand navigating geopolitical crises. The same dispensation is back in power but as a coalition. And running a coalition government is usually an onerous task, so many have been wondering if the BJP-led dispensation will be able to push through reforms and take policy decisions as smoothly as earlier.
"The most important economic reforms of 1991 were carried out by a coalition government," says veteran economist M. Govinda Rao, Professor Emeritus at the National Institute of Public Finance and Policy (NIPFP), who was a member of the 14th Finance Commission. "Necessity was the mother of invention. The country had no choice at the time but to go through with these economic reforms," says Rao, also the Chief Economic Adviser at Brickwork Ratings, underlining that coalition governments are not bad news for economic policymaking.
He, however, cautions that the Modi 3.0 government may work on reforms at the margin but big-ticket ones relating to land and labour may not go through. "It is unlikely that they will have enough support for carrying out such major reforms," he says.
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