How Hung Parliament Can Impact Economy

Parliaments, where no single party has a majority in the number of seats occupied, are referred to as hung parliaments. In such systems, general elections frequently result in one party gaining an absolute majority and installing a new government fast. A hung parliament is an unfavourable part of the Indian or any government in general. None of the opposing parties ever want the government to end up setting a hung parliament. But, it is, on the other hand, crucial for the people of the country and members of parliament to understand the importance of a single governing party that has been selected by the people of a country. 

Before we look at the economic implications of a hung parliament, it’s vital to define the hung parliament meaning. When no major political party has an absolute majority of seats in parliament, it is known as a hung parliament. In most two-party general elections, one party will win an absolute majority and establish a government; however, if no party wins an absolute majority, the main parties may create a coalition government.

Hung Parliament Meaning

The hung parliament meaning is pretty straightforward. It occurs when no party or pre-election alliance can achieve a majority in the election. In the Lok Sabha, there are a total of 543 seats. To establish the government, a party or coalition must win one seat above 50% of the vote or 272 seats. If it is unable to do so, the President may ask the leader of the single most powerful party or coalition in the House to try to win the House’s confidence. In the alternative, the President may invite a coalition of parties that he believes has a chance of gaining a majority in the House. This is what we call hung parliament meaning.

First Hung Parliament Of India

In April–May 1996, India conducted general elections to elect members of the 11th Lok Sabha (House of the People). The election resulted in a hung parliament, with three Prime Ministers in two years, forcing the country to go to the elections again in 1998. The administration was founded by Atal Bihari Vajpayee of the Bharatiya Janata Party, the single largest party to win this election, garnering 67 more seats than the previous 10th Lok Sabha, lasting just 13 days. This was the time when the first hung parliament of India was formed.

The United Front was formed, and 332 members of the Lok Sabha’s 545 seats voted for it, making H. D. Deve Gowda of the Janata Dal the 11th Prime Minister of India. Later, after Lalu Prasad Yadav quit Janta Dal and created his party, the 11th Lok Sabha was dissolved to get a fresh mandate from the voters for the following 12th Lok Sabha in the 1998 Indian general election.

Following the 1996 Indian general election, four members of the Rajya Sabha, India’s Upper House, were elected to the 11th Lok Sabha.

Difference Between Hung Parliament & Minority government

Although the words Hung Parliament and Minority Government are very similar, let us look at how their formal meanings differ.

• Minority Government- In a parliamentary system, a minority government, minority cabinet, minority administration, or minority parliament is created when a political party or coalition of parties does not have a majority of total seats in the legislature.

• Hung Parliament- A hung parliament is a term used in Westminster-style legislatures to describe a scenario in which no one political party or pre-existing coalition (also known as an alliance or bloc) has an absolute majority of legislators (also known as members or seats).

The above two definitions indicate the difference between hung parliament & minority government. To be precise, a hung parliament is a scenario that occurs when no political party has an absolute majority in the legislature. A minority government, on the other hand, is the government formed to have a majority of total seats in the legislature.

Is Hung Parliament Good for the Economy?

A hung parliament will let the government save money, which will positively influence the economy. This is because when elections happen, the parties have to spend loads of money for their promotions which could be saved if a hung government is formed in place. A hung parliament is, therefore, able to use public money for people’s welfare rather than squandering them on re-elections. Every political party has its ideology, and when two parties join forces, they may bring the best of both philosophies to bear on the nation’s economic prosperity.

As a result, depending on the politicians’ motivations and the connection between the two parties forming a coalition government, a hung parliament can have either a detrimental or good influence on the economy. It completely depends on the scenario and the mutual relationship of the opposing parties.

Conclusion

While a hung government is a scenario that no one ever wants to occur, there are times when having a hung parliament is the only option left. The absence of a majority in the Parliament is the primary reason for a Hung Parliament. However, there are a variety of causes for this correlation. Understanding the causes for the emergence of a Hung Parliament is critical because only after analysing these reasons can the government take steps to prevent each one and, as a consequence, lower the likelihood of dealing with a Hung Parliament situation. It is, therefore, crucial to plan out a decision over the mutual conversation for the welfare of the common people.