Budget 2012: 'Policy paralysis' hits UPA, TMC to hold meet today

The possibility of mid-term polls looms large on the UPA Government at the Centre as allies like the Trinamool Congress (TMC) speak openly about policy paralysis. TMC leader and Union Railways Minister Dinesh Trivedi on Thursday openly said that "policy paralysis will be more acute", thanks to the 2012 assembly election results.

He added, "There is a fear that big ticket reforms will be difficult. The parties have political ambitions. Government has to make a tight-rope walk. Numbers are a reality, you cannot change the numbers. We need to be real."

Earlier, he had stated that if there was an anti-Congress wave in the country and "other parties are asking for it, then the government should announce early mid-term polls". Although he retracted his statement within no time, the harsh words from an ally showed that it was not going to be a jolly ride for the Congress anymore.

It seems that even the Congress is aware of the reality now. During the Budget Session of Parliament, which begins on March 12, the government has big plans. Besides the General Budget and the Rail Budget, the government plans to include FDI in retail, the NCTC, Lokpal Bill, Women's Reservation Bill and massive educational reforms.

The problem, however, remains that all these plans need support from both allies as well as opposition parties, which certainly is difficult to achieve.

Adding to the trouble of the UPA is a strong Samajwadi Party in Uttar Pradesh. This has also dashed the hopes of the UPA that was planning to pit SP against the demanding Mamata.

Sources say that faced with slow economic growth, Finance Minister Pranab Mukherjee had begun work on a tough budget. The government was also planning a steep increase in fuel prices with oil companies complaining of losses.

Although neither has been deferred, the Congress will have a hard time convincing its allies on both.

With two years to go for the General Elections, the UPA does have time to mend its ways, but with the opposition and allies frequently ganging up, time seems to be running out for the Congress.

Meanwhile, the TMC is slated to hold a parliamentary party meet on Friday to discuss its strategy ahead of the Parliament's Budget Session. The meeting will be chaired by Mamata Banerjee.