Chief Minister of West Bengal and TMC supremo Mamata Banerjee announced on Tuesday that her party would pull out from the UPA government after the Congress-led alliance at the Centre raised prices of diesel, decided to cap the number of subsidised LPG cylinders and allow FDI in multi-brand retail and other sectors.
Defence Minister AK Antony on Friday, Sept 21 has expressed confidence that the UPA government would survive.
Antony maintained that there was no threat to government following withdrawal of support by TMC.
Antony's cabinet colleague and Union Minister of State KV Thomas also echoed the Defence Minister.
Thomas said that the national parties did not want an early election. He also lamented the behaviour of Trinamool and said it was unpredictable.
After TMC has pulled out of UPA, the government at the Centre has become a minority. Experts say that once Banerjee informs President Pranab Mukherjee formally of her decision and her six ministers resign to the Prime Minister, the President will have to call for vote of confidence in Parliament.
With TMC's exist, UPA is now hoping to get support from Mayawati's BSP to tide over the crisis.
Even after UPA government received a lot of flak from both opposition parties and its allies for its recent economic reforms, Prime Minister Manmohan Singh seems all geared up to bring more changes into country's economic scenario.
After biting the bullet on foreign direct investment (FDI) in retail and aviation, the Centre is all set to propose an increase in the FDI cap in insurance sector. According to sources, the government is likely to hike the FDI in insurance from 26 per cent to 49 per cent.