Date:27/05/2007 URL: http://www.thehindu.com/2007/05/27/stories/2007052718860300.htm

Karnataka - Bangalore

Sinha hits out at Centre's policies

Staff Reporter

MAKING A POINT: Former Union Finance Minister Yashwant Sinha (left) with Chairman and Managing Director of Vijaya Bank Prakash Mallya at the two-day All-India Conference of the Vijaya Bank Employees' Association, in Bangalore on Saturday. — Ph oto: Bhagya Prakash K.

BANGALORE: The UPA Government's decision to mix religion with banking has damaged the constitutional arrangement hitherto followed and demoralised the banking sector in the country, the former Union Finance Minister Yashwant Sinha has said.

Speaking at the inaugural of a two-day All-India Conference of the Vijaya Bank Employees' Association, which is affiliated to the Bharatiya Mazdoor Sangh (BMS), here on Saturday, Mr. Sinha said that the Union Government's recent regulation to facilitate loans, specially for minorities at a low interest rate, had set a bad precedent at the cost of democracy.

Although the purpose behind promoting such a policy was not beyond comprehension, it would have been wise on the part of the policy-makers to include all deserving sections of society under the purview of its new regulation in the larger interest.

That kind of financial thinking in the name of helping the poor would not augur well for the country, as its impact on the secular and democratic fabric would be felt in the near future. Those concerned in the banking sector should cogitate over the issue, he added.

Opposing the imposition of taxes on heavy cash transactions and fringe benefits, Mr. Sinha held out a promise that if the BJP or NDA regained power it would immediately abolish such taxes, as they were not pragmatic. It would also give better income tax relief by enhancing the income tax exemption up to Rs. 2 lakh for all and it would be Rs. 3 lakh in case of senior citizens. It would not impose any tax on the pension income, he said.

Defending the BJP and NDA Government's policies on the issue of enhancement of pension and providing jobs on compassionate grounds as being demanded by bank employees, Mr. Sinha said that as the economic situation of the country was now different, the UPA Government could afford to accept the demands on reasonable grounds.

Vishvesha Tirtha Swamiji of Pejawar Math was present. Chairman and the Managing Director of Vijaya Bank Prakash Mallya was the guest of honour. National president of BMS Girish Awasthi and BMS State unit president Alampally Venkataram were present.

Association president K. Ramakrishna Poonja delivered the keynote address.