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Hard decisions inevitable: Sinha

By Sushma Ramachandran

NEW DELHI March 28. With some Bharatiya Janata Party leaders blaming the Union budget for the defeat in the Delhi civic polls, the Finance Minister, Yashwant Sinha, today sought to deflect some of the criticism coming his way. "Popularity and the Finance Minister are contradictory words,'' he said referring to widespread resentment among the salaried class to the budgetary measures reducing tax exemptions.

Party leaders such as Jagdish Mukhi, leader of the Opposition in the Delhi Assembly, and the Delhi BJP chief, Mange Ram Garg, blamed the budget proposals such as the hike in LPG prices and tax issues for the party's poor performance in the election to the Municipal Corporation of Delhi, where the Congress has had runaway success.

The party spokesman, Sunil Shastri, however, sought to downplay the rising tide of discontent within the party over the impact of the Budget on the Delhi voters. He told newspersons that it was only one of the possible factors for the party's defeat and a thorough analysis was needed before reaching any conclusion.

Others have not been so circumspect with Mr. Vijay Kumar Malhotra having been extremely vocal in the run-up to the elections about the need for a rollback in the decision on tax exemptions, which would severely affect the hard-core BJP middle class supporters.

The Finance Minister, who was responding to questions about the criticism by the local BJP members about his tough budget, said hard decisions have to be taken when the situation was not conducive. He said he would have to face the consequences of such unpopular measures. Asked whether he accepted responsibility for the defeat, Mr. Sinha maintained that in a difficult situation, it was not possible for any Finance Minister to remain popular and run the country at the same time.

Mr. Garg had on Wednesday claimed that the party supporters stayed away from the civic polls here because of the harsh measures announced in the budget.

As for rollback of some measures, such as the newly-imposed dividend tax, Mr. Sinha declined to comment as this would be taken up in Parliament when the Finance Bill is taken up for discussion.

Mr. Sinha, who was talking to newspersons at the launch of smart cards and Internet banking by Corporation Bank, said the softer interest rate policy would be continued even as he welcomed the cuts in lending and deposit rates by the State Bank of India. The Government had deliberately adopted a policy of softer rates, as industry complained that it could not be competitive in a high interest rate regime, he said.

Verma resigns

PTI reports:

The drubbing received by the BJP in the civic elections in the capital claimed its first victim with Sahib Singh Verma resigning as the party's vice-president.

Mr. Verma, former Delhi Chief Minister, resigned owning moral responsibility and was joined by several party MPs from the capital in attacking the budget for weaning voters away from the BJP. ``The budget has created problems,'' he said.

The BJP managed to get only 16 seats, while the Congress bagged 108 seats.

Mr. Verma also threw the gauntlet to other leaders of the Delhi unit to follow his example and quit their posts owning responsibility.

The CNG crisis in the capital and the communal violence were also cited as possible reasons for the defeat.

Midterm polls in Gujarat ruled out

The BJP today ruled out mid-term Assembly polls in Gujarat saying the time was not ripe for such an exercise because of the communal situation and its effect on the trade and industry.

Mr. Shastri, when asked about the possibility of mid-term elections in the State, said the Chief Minister, Narendra Modi, had himself brushed aside suggestions in this regard after his meeting with the Prime Minister, Atal Behari Vajpayee, on Wednesday.

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