The Hindu : A modest package

Online edition of India's National Newspaper
Friday, Mar 07, 2003

Opinion

Opinion - Letters to the Editor

A modest package

Sir, — Your Editorial `A cautious budget' (March 1) is a tribute to the Finance Minister, Jaswant Singh's efforts to present a pragmatic budget with a modest fiscal package. As you have observed, it is not made with an eye on the elections. The Finance Minister has taken good care of the pensioners and senior citizens. But the hike in service tax, which is more a revenue mobilisation endeavour, looks like he is grabbing with his left hand what he is giving with his right.

Mr. Singh himself has admitted that it might be possible that the increased service tax, the higher cost of petrol and diesel and a possible hike in LPG and kerosene prices could puncture the feel-good-factor of his budget and that it had to be managed.

The rebate offered for children's educational expenses, the health insurance scheme and the new pension scheme are realistically designed to help the average citizen. Likewise, the exemption of VRS money from the income tax net may prompt many employees to seek VRS and thus the proposal may help to generate employment to some extent.

K. Krishna Rao,
Hyderabad

Sir, — Under the new pension scheme announced in the budget, a senior citizen will get a maximum pension of Rs. 2000 every month if he deposits Rs. 2.6 lakhs.

It is not clear if the entire amount should be deposited fully or in instalments. A senior citizen may not have such a huge amount to be deposited immediately. To ensure another source of income, the interest rate on the post office monthly income scheme may be retained at nine per cent for senior citizens alone and the subsidised bonus at the end of six years as given now can be dispensed with.

V. Rajagopalan,
Chennai

Printer friendly page
Send this article to Friends by E-Mail

Opinion

Stories in this Section

Digging up the past

Public-private partnership for infrastructure

Protecting the bureaucracy

India's Afghan policy

Order on excavation: more questions than answers

U.P.: Centre's role dubious