FACTBOX: Achievements, challenges under India's government

(Reuters) - India's government faces a vote of confidence later on Tuesday which, if it wins, may allow it some political space for pushing on with stalled economic reforms.

It now has the parliamentary support of a regional party to replace that of former communist allies, who withdrew over a nuclear energy deal and had blocked many government initiatives over the last four years.

But analysts say they do not expect any major big-bang push as the government is likely to have to focus primarily on bringing down inflation ahead of key state polls and federal elections by early 2009.

Following are reforms and challenges faced by the United Progressive Alliance government since it took power in 2004.

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THE ECONOMY:

The $1 trillion economy has grown an average 8.88 percent over the past four fiscal years. The central bank forecasts it to expand 8.0-8.5 percent in the 2008/09 fiscal year (April-March).

Many private sector economists expect growth to be slower than the central bank estimate as monetary tightening to contain spiraling inflation is expected to curb demand.

Inflation is nearly 12 percent annually, its highest in more than 13 years. The key lending rate is 8.5 percent, its highest in six years.

REFORMS:

* VAT: In April 2005, pushed through introduction of value-added tax by state governments. Billed as India's most ambitious tax reform in five decades, it replaced a complex web of sales tax at state level and has boosted revenues.

* PRIVATISATION: Abandoned privatization of state-owned firms completely.

* CONVERTIBILITY: Prime Minister Manmohan Singh called for progress on greater convertibility in 2006 and a panel recommended moving towards a fuller currency float in three phases ending in 2010/11.

* FISCAL DISCIPLINE: Implemented the Fiscal Responsibility and Budget Management Act introduced by the previous government; the Act stipulates the federal fiscal deficit must fall to 3 percent of GDP by 2008/09.

Aims to cut its deficit to 2.5 percent in 08/09 but economists say off-budget subsidies, farm loan waiver and an expected hike in civil servant salaries may exceed the estimate.

* FARM LOAN WAIVER: In 2008, announced an ambitious plan to write off debts of small farmers, totaling $16.6 billion. Around 43 million farmers will benefit from the plan.