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BJP coalition faces new crisis over subsidy cuts
NEW DELHI. Mar 7: India's ruling Hinou nationalists fafed a fresh crisis today as their partners in the coalition government joined hands to demand a rollback in subsidy cuts announced In last week's budget, reports AFP.
Key allies of the Hindu na-tionafist BJP party said they would not soften their demand, as a smaller electoral partner ally threatened to vote against the five-month-old government if the subsidies were not fully restored.
Finance Minister Yaswant Sinha in his national budget slashed subsidies on food by 12 per cent and fertilisers by 4.5 per cent in a gamble to rake in 82 billion rupees (1.9 billion dollars) during the fiscal year beginning April 1.
The move hit millions of people and prompted a strong sense of disquiet within Prime Minister Atal Behari Vajpayee s multi-party coalition which took power last October.
The centrist Janata Dal (People's Party), which has 20 members in the coalition, threatened to vote against the government unless it restored te cuts.
"We have voted against the government on the issue of Common Civil Code and we may do it again." warned Dal
deputy chief Devendra Prasad Yadav.
The BJP's largest coalition partner -- a regional party from the southern state of Andhra Pradesh -- handed a memorandum to Vajpayee on Monday that also demanded an about-turn on subsidies.
"Our stand on the issue is very clear as the cuts will hit the common man and adversely affect farmers." said a spokesman for the party.
The BJP tried to play down the looming crisis, saying differences within the coalition could be sorted out by talks.
"We will strive’ to arrive at a consensus In the Interest of the people and the country." the party's national secretary Ash-wanl Kumar told AFP.
"This problem will be thrashed out after we sit together and discuss It ... This Issue is not a threat io our ruling coalition." Kumar asserted.
The BJP on its own has 182 members in the 545-seat parliament while its allies, numbering around 16. occupy 114 seats in the federal legislature.
Kumar said Prime Minister Vajpayee had met the leaders of his coalition partners and set up a meeting for them with Finance Minister Sinha on Tuesday.
These are small differences and I am sure they will be resolved." Kumar said.
Sinha insists that cutting large-scale subsidies are crucial to reining in the country's growing fiscal deficit and encouraging economic growth.
The fiscal deficit for the year ending March 31 was expected to be 5.6 per cent of gross domestic product, exceeding the government target of four per cent.
Sinhas budget targeted a deficit of 5.1 per cent for fiscal 2000-2001.