Govt to push economic reforms

Having won the trust vote comprehensively, the government on Tuesday sounded an upbeat note on the economy, saying it would move forward on implementing pending economic reforms including legislation aimed at increasing the foreign direct investment limit in insurance to 49 per cent, allowing foreign investors in banks higher voting rights and reforming the pension system.

The Bills are likely to be taken up in the monsoon session of Parliament, dates for which are yet to be decided. All these had been held up following strong objections from the four Left parties, which had supported the government until last month.

Speaking to a television channel after the trust vote, Finance Minister P Chidambaram said the government's first priority was to combat inflation and then ensure the growth momentum continued.

Chidambaram was reiterating Prime Minister Manmohan Singh's  reply to the trust vote. Singh put tackling "imported inflation caused by a steep increase in oil prices" at the top of the list.

"Our effort is to control inflation without hurting the rate of growth and employment," he said.

Singh's speech outlined nine priority areas of national concern that included bolstering various national welfare schemes such as rural employment, education, midday meals, drinking water, sanitation and irrigation, among others.