Finance Minister Pranab Mukherjee, in his maiden interaction with the media after the formation of the United Progressive Alliance government said his government was committed to restoring growth and employment with increased spending funded by incremental borrowing, media reports said.
He, however, hinted that the government was equally committed to the process of fiscal consolidation over a period of 2 to 3 years. The Finance Minister said his government was facing a major impasse in the area of public finance, adding that it calls for the government to spend more to boost the economy regardless of whether it increases the fiscal deficit. However, if the government's action spurs growth, its revenues will improve and the fiscal deficits will become manageable.
He asserted that the next wave of economic reforms would provide a sustained stimulus to growth. Towards this goal, the finance ministry has listed out seven important pending reform bills on insurance, pension and banking reforms for priority passage by Parliament. These bills form part of the 100-day agenda, being finalized by Prime Minister Manmohan Singh's office or PMO, officials reportedly said.
As per finance ministry's note to Cabinet Secretary, K.M. Chandrasekhar and the PMO, fresh approval by the cabinet is required to introduce the bills (except the Insurance Amendment Bill) again in the ensuing session of the next Lok Sabha.
With Insurance companies facing dearth of capital to sustain growth, the Insurance Laws Amendment Bill assumes top priority for the finance ministry over other keenly anticipated steps like disinvestment. As the bills are already tabled in the Rajya Sabha, where bills do not lapse, it would not need fresh introduction in Parliament.
Officials added that the government was keen to push through the insurance sector bills quickly, which aim to raise the foreign direct investment limit to 49% from the current 26%. A new parliamentary committee on finance would be formed to examine the Bill, which is expected to be the first legislation to be taken up for discussion in Parliament.
This Insurance Amendment Bill seeks to raise LIC's capital to Rs.100 crore from Rs.5 crore. Two other crucial bills include the Banking Regulation Amendment Bill and the Pension Fund Regulatory and Development Authority Bill.
Besides, four other bills, State Bank of India Amendment Bill, the State Bank of India (Subsidiary Banks) Amendment Bill, the State Bank of Saurashtra (Repeal) and State Bank of India (Subsidiary Banks) Amendment Bill and the Micro Financial Sector (Development and Regulation) Bill, have been listed by the finance ministry.
The SBI Amendment Bill provides for reducing the limit on minimum stake of the government in lender to 51% from 55% to enable it raise capital through stake sales.
The Banking Regulation Bill intends to remove the 10% voting rights cap in the private banks. However, the voting rights in the state owned banks would stay at 1%, and for SBI and its associate banks it will remain at 10%. The Banking Regulations Act does not govern these banks.
The other key proposal is that any investment of more than 5% stake in any banking company will require prior approval of the Reserve Bank of India.
The pension bill provides for a statutory backing to interim pension regulator PFRDA. It will also empower PFRDA to regulate the new pension scheme as well as pension funds.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.