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Electoral setbacks in Punjab and Uttarakhand hem Manmohan’s govt in

The results were a major boost for BJP, which believes that its performances in both states have put the party back in the political reckoning.

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NEW DELHI: The anti-incumbency factor reared its head again to sweep Congress governments out of power in Punjab and Uttarakhand on Tuesday, setting the stage for an increasingly disconcerting period for the Manmohan Singh government.

The results were a major  boost for the NDA, particularly the BJP, which believes that its surprisingly good individual performances in both states have put the party back in the political reckoning.

The only silver lining in the gathering cloud over the Congress was its decisive victory in Manipur.

The results were more or less along expected lines despite the confusion created by an array of exit polls. But the Congress went into deep gloom and vent its anger on the handiest scapegoat — rising prices.

The rumble rose to a crescendo with Tourism Minister Ambika Soni, party spokespersons Abhishek Singhvi and Jayanthi Natarajan, and other leaders blaming their political difficulties on inflation.

The voices from the Congress hold ominous portents for the Manmohan Singh government, already buffeted by pressures to go slow on liberalisation. Some of the pressures are expected to manifest themselves in the budget today.

Although there is no threat to the government, a senior UPA leader confided that the results are a body blow to its economic policies. He felt that the government may be coerced into taking “irrational decisions” in a knee-jerk reaction to the anti-reform murmurs within the Congress.

Party circles agreed that the friction between the government and the Congress will increase as the latter hunts for a magic formula to win elections.

Among decisions likely to stay on the backburner are pension reforms, disinvestment, opening up of retail, and, possibly, the creation of more SEZs. Political circles agree that the government will find it difficult to implement new measures and bold decisions, both on economic issues and on foreign policy.

The mood in the Congress has put a question mark on the possibility of a breakthrough on Kashmir, as fears of a BJP revival haunt the party.

The government will also come under pressure from an increasingly assertive Left. Pointing out that the Congress defeat has made the government more vulnerable, a CPI(M) leader said they intend to use the remainder of the UPA’s term to correct “distortions” in current economic policies and make them more “people-friendly”.

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