Opinion - Letters to the Editor   

Unjustified hike

Sir, — There is already a system in vogue to fix petrol and diesel prices. The Petroleum Ministry is doing that zealously. Therefore, the rationale behind the decision to increase the prices further in the budget is not understood. Let us not forget that the State Governments have also got a mechanism to charge proportionate sales tax. The impact of the price rise on the middle class and the poor will be high. The prices of essential commodities will shoot up. Already there is a clamour for hiking the bus fares. There should be a system to exempt public transporters and the middle class vehicle owners from the periodical revision of prices. Vehicles are no more a luxury item.

T.A. Jacob,
Perumbavoor, Kerala

Sir, — I would like to draw the attention of the Finance Minister to the fact that the economy is doing well but not the people. One can see the light of wealth at the centre but there is the gloom of poverty in the periphery. Without changing and motivating the society from the grassroots, one cannot expect to find real success. Science alone cannot do the job of social revolution. People are leaving agriculture and also the villages. National projects are losing their meaning. Many States are facing the crisis of over-production; factories are being closed. We talk only of export-led growth and total liberalisation forgetting the internal dimensions.

Rakesh Kumar Singh,
Delhi

Sir, — The budget has been a balanced one. The lowering of interest rates may not be welcome. But Mr. Singh has balanced it with sops in terms of IT deductions, duty cuts, etc. Again, the cut in fertiliser subsidy is welcome since the benefit was being reaped mainly by rich farmers. To induce people to pay tax, the Minister should have thought of lucrative incentive schemes for taxpayers.

Geraldine H.,
Mumbai

Sir, — The announcement of a new pension scheme is welcome. The special feature of the scheme is that the Government contribution is equal to that of the employer.

Under the existing scheme, administered by the Employees Provident Fund Organisation, the Government's contribution is only 1.67 per cent whereas that of the employer is 8.33 per cent of the wages/salaries of workers. The administration of the scheme should, however, be entrusted to the EPFO instead of the LIC as proposed in the budget.

C. Ramesh,
Keeramangalam, T.N.

Sir, — In view of a likely fiscal deficit of around five per cent, there is no denying the need for a consensus to trim Government expenditure. There is also a need for more investments on infrastructure and agriculture to promote growth and keep the deficit within a reasonable limit. Also, the Finance Minister would do well to raise the IT exemption limit, especially under Section 88, while retaining the other existing exemptions and rebates.

R. Sekar,
Angul, Orissa

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