Fate of budget will be crucial in first weeks of PM's term

MR Inder Kumar Gujral, who heads the latest incarnation of a multi-party coalition, was sworn in yesterday as India's 12th prime minister since independence.

President Shankar Dayal Sharma inaugurated 77-year-old Mr Gujral and the 33 members of his cabinet at a colourful ceremony in the presidential palace. Afterwards the new prime minister promised to provide a "clean and transparent administration" dedicated to pursuing economic reforms.

But before he does that, Mr Gujral has to weather a confidence vote today for his 16-party, centre-left United Front coalition in the 545-member Lok Sabha (lower house).

United Front MPs, however, said they were confident of winning the vote as they had been assured of support from "outside" government by the Congress party and the Tamil Maanila Congress (TMC).

Mr Gujral, a former Marxist turned social democrat, has become prime minister because of the collapse of support for Mr H.D. Deve Gowda, whose previous coalition lasted only 10 months. He had to weather a bitter battle for the prime ministerial post, which lasted three days and led to the TMC walkout when its man, Mr G.K Moopenar, was passed over.

Mr Gujral retained the foreign ministry portfolio he held in the previous government, and almost the entire cabinet from the outgoing administration with their portfolios unchanged.

Mr Deve Gowda lost a vote of confidence in parliament on March 11th after the Congress Party withdrew its support. Congress, however, renewed its support for the coalition once Mr Gowda resigned as its leader.

One of the most crucial tasks facing Mr Gujral's government is passing the 1997-98 budget before May 14th. After that date the government faces bankruptcy.

In the budget task the government is handicapped by not having a finance minister. Mr P. Chidambaram, who presented the budget to parliament last month, is out of office after the TMC pulled out of the government, although pledging support from without.

Finance Ministry officials, however, said negotiations between Front MPs and TMC leaders to persuade them to rescind their withdrawal had been promising so Mr Chidambaram could be back in time to steer the budget safe to port.

As foreign minister Mr Gujral is credited with making peace with India's neighbours and resolving long-standing issues with Bangladesh. After a three-year freeze, he initiated talks with his Pakistani counterpart earlier this month to try and normalise tense relations between the two nuclear-capable neighbours which have fought three wars since independence 50 years ago and are engaged in an arms race.

He also played a prominent role in India's refusal to sign the nuclear Comprehensive Test Bar Treaty last year, and also in making New Delhi a "dialogue" partner with ASEAN, the Association of South-East Asian Nations.

But in an earlier tenure as foreign minister in 1989-1990, Mr Gujral was criticised for supporting Iraq during the Gulf War. Pictures of him hugging President Saddam Hussein at the height of the conflict sent a negative image of India around the world.