With the UPA’s presidential candidate, Mr Pranab Mukherjee, expected to resign as Union finance minister on Tuesday, the race for his berth has picked up pace.
Sources disclosed that following Mr Mukherjee’s resignation, no matter who becomes finance minister, Prime Minister Manmohan Singh is expected to take complete control of the finance ministry and the country’s economy.
So far, Mr Mukherjee was the virtually the 'last word' in major policy decisions in the finance ministry,
including on foreign investment, retail and taxation policy.
“No matter, whosoever takes over as finance minister, the Prime Minister will have the final say in policy matters,” a senior Congress functionary said.
Those in the race for the hot-seat include Kamal Nath, Jairam Ramesh, P. Chidambaram, C. Rangarajan and Montek Singh Ahluwalia. The thrust will be on foreign investment, sources said.
The possibility of providing 'certain relaxation' to the corporate sector was also not being ruled out. Some in the party feel that with the Budget process over, the Prime Minister could also look at the option of keeping the finance ministry to himself and work through a minister of state .
Following the possibility of pursuing an aggressive policy to encourage foreign investment, the government was also considering the possible reaction of the allies. Though the Trinamul Congress, led by Ms Mamata Banerjee, was being viewed as the 'greatest obstacle' to reforms, the government was considering leaning on the SP and BSP for support.
As for the TMC, the Congress is of the opinion that with nearly 30 per cent of the Muslim vote bank in West Bengal, Ms Banerjee 'cannot shift to the BJP-led NDA'. “She will keep opposing the UPA, but will have to stay with the UPA at the Centre,” a senior Congress leader felt.
On SP chief Mulayam Singh Yadav indicating that his outfit was not willing to join the government, sources said the top leadership of the party 'did not approach him with any formal proposal'. It was learnt that following 'lack of communication' from the Congress high command, the issue of approaching Mr Mulayam Singh Yadav to join the government was 'never taken up'.