Raghuram Rajan urges political parties to pass key economic bills

Reserve Bank Governor RaghuramRajan today exhorted political parties not to postpone passageof key economic bills because it may become challenging to getthem approved after the 2014 general elections.

“A stable government post-elections cannot be taken forgranted…it would be dangerous for parties to postponenecessary legislations with the idea of passing thelegislation post-election. Post-election politics may becomeeven more challenging for whoever assumes power,” he said. Rajan spoke at the Delhi Economic Conclave 2013 on ‘TheAgenda for the Next Five Years’ .

Similarly, Rajan said delays in putting large, stalledprojects back on track or an additional fiscal slippage wouldonly amplify the challenges that the new government will face.“It will benefit the economy if Parliament passes keybills and if current authorities take action to improve growth and fiscal health, including raising diesel prices to marketlevel and eliminating other poorly targeted subsidies,” theGovernor said.

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Rajan said that in the absence of a stable governmentafter the elections, due early next year, political partieswould have to work together to meet the challenges facing theeconomy, otherwise the markets and rating agencies may not bekind to India.

Rajan said economic growth seems to be stabilising.“We are seeing some glimmerings of stronger growth. Butits too early to say we have certainly hit bottom. But I amhopeful that (growth) would be around 5 percent.“The country’s economic growth slowed to decade low of 5per cent in the previous financial year.

PTI