Foreign Institutional investor Morgan Stanley thinks Bharatiya Janata Party (BJP) will have sufficient number of Member of Parliament (MPs) to pass the Goods and Services (GST) BIll by July 2016, according to Economic Times.
GST Bill has been in a limbo since 2015 due to insufficient support from the Opposition party Congress. Due to lack of votes from the Congress, the bill has not been passed in the Upper House.
As per ET reports, the key to bill’s passage is a reduction in the number of Upper House members which stands at 91 to 82 who are opposing the bill.
“We forecast that to happen by July 2016,” Morgan Stanley’s analysts Ridham Desai and Sheela Rathi said, according to ET.
The government needs the higher of 50% of the Upper House and two-thirds of members of the Upper House to pass the bill. Thus, not more than 82 members can oppose the bill if all the present and voting.
At present, there are 91 Upper House members including 67 Congress legislators who are against the bill. 75 members are schedules to retire from the house between March and July which will turn in favor of the BJP-led government.
“We calculate that the BJP will gain two seats, the INC will lose seven, and the BJP gain another seven via newly nominated members in the Upper House. The net result of this and gains by BJP allies increases the number of those supporting the bill, from 97 to 110, and decreases those opposing to 81,” Morgan Stanley said, according to ET.
Source: DNA India