ON a day when the stock markets soared by over 400 points and the Prime Minister’s Office quickly stepped in to block a mischievous draft circular on the General Anti-Avoidance Rules issued by the finance ministry, Prime Minister Manmohan Singh confronted both the extent of the faith the economy is putting in the new role he has assumed and the roadblocks a recalcitrant bureaucracy can put in his way. There was no reason for the finance ministry to issue the draft guidelines just a day after Singh had clearly expressed his unhappiness at the impact of the tax measures on the economy.

… Some of the problems that the telecom and coal ministries are wrestling with have been created by the bureaucracy. Now, arguably, [Mr Singh] has a stronger opportunity to bring in substantial changes. The agenda includes moving ahead with the setting up of transparent allocation mechanisms for resources like natural gas, telecom spectrum, coal and even water and land.— (June 30)