The citizen gave their verdict for a stable Government. Contrary to belief and exit poll the country got a decisive verdict in favour of Congress led alliance to govern the country in the path of progress. It has now become apparent that Dr. Man Mohan Singh is going to become the next Prime Minister of the country. This would be golden opportunity for the Sonia Gandhi led alliance now to continue the reform programme which it could not pursues for the consistent opposition of Communist front.

The most important requirement is to control fiscal deficit. It may not be possible to control the deficit overnight. So perhaps the new Government would now easily continue divestment drive of Public sector enterprise which could not be carried out despite its willingness. In case divestment programme could be taken up the problem fiscal deficit would become much more insignificant.

Another programme perhaps new Government would take up is liberalization in the field of higher and specialized educational system in the country. Now the government may allow setting up of foreign universities in the country. This would augur well for the students.

The question arises now whether further reduction of interest rate is required to boost up GDP growth rate of the country? It is a tricky matter. In case interest rate is lowered for boost up industrial sector deposit rate for citizens would have to be also lowered. This would greatly effect the small investors and also senior citizen. So before lower the interest the new Government shall have to device a way to protect the interest rate on deposit for small investor and senior citizen.

The most important reform would come in case of industrial relations. The UPA government tried to bringing in reforms in case of industrial relations. This could not be achieved due to great pressure from combined left parties. It now appears the new Government would take up reform in industrial relations sector so that workers become proactive to productivity scenario of the country. The government would like to have a smooth and tranquil environment in industrial sector of the country and less interference from trade union in augmenting process of production and productivity.

Due to pressure of left parties the interest rate of PF had to be maintained artificially. This greatly impacted the finance of the Government. This time perhaps new government may have to take up steps to ensure judicious rate of interest for the PF segment. This however would be hugely an unpopular decision. But perhaps the new Government will muster courage and take effective steps to bring in sanity to the artificial jacked up rate.

Many economists have asked whether taxes should be brought down. The new Government may bring down the taxes. In case the government brings down the rate of interest to boost the economy then it would imperative to protect the interest of small investor as well as senior citizen. Under the circumstance the Government may adopt the route to provide further tax concession to Senior citizen, women and general public.

What the government would do to create demand? It would start investment in infrastructure which in turn would boost up employment. The export oriented industries would be looked after so that country’s foreign exchange earning would get a boost. Many people have mentioned that the third stimulus package may be brought in. But according to us this would not be required. Rather selective incentive for certain segments would be the requirement. Many people are looking for an answer to an important question. Who would be the next Finance Minister of the country to take up programme for reform? Would Prime Minister keep the portfolio to himself or hand it over to Montek Singh Alhuwalia, or former Reserve Bank Governor Varadarajan or to Pranab Mukherjee. Perhaps Pranab Mukherjee would be difficult to be spared from External affairs . So, either of other two persons would be excellent choice. Both of have vision and dynamism. The most important qualification both enjoy the mental trust of the prime Minister. Let us hope the new team can boost up the growth from below 6% to at least 7.5% in the next fiscal. Surely this vision would be reflected in ensuing budget.

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