A policy for growth

Updated: Oct 29 2005, 06:33am hrs
Your editorial ‘New balance of convenience’ (Oct 26) was crisp. The busy season credit policy unveiled by the RBI is more like a reassuring document, with the dual aims of growth with price stability and relentless focus on containing inflation. If manufacturing continues to chug ahead, agriculture, in the backdrop of a good monsoon, could push growth even further.

The hike in reverse repo rates by 25 basis points, to 5.25%, is clearly aimed at taking out excess liquidity to keep inflation manageable. Commercial banks will be relie-ved, for this measure will yield better returns on their surplus funds.
Rationalising the aggregate capital market exposure of banks’ to 40% of net worth is an audacious, yet logical, move to provide a more holistic picture on the pattern of banks’ funds flowing into the capital market.
- Srinivasan Umashankar


IT returns
News reports say the salaried class may not be required to file income-tax returns if those belonging to it have no other income. This is of no use, as every salaried person will have some or the other income, like interest on a savings bank account, which is not exempt from income tax.
To make it practical, those from the salaried class who have no business income, or any from property or capital gains, but have income from sources like interest on savings bank accounts and bank deposits upto, say, Rs 15,000 per annum, should not be required to file IT returns. Employers must be authorised to deduct tax on it. Only then will such an exempt ion be meaningful.
- Mahesh Kapasi

Snap-shots
With new airport terminals coming up or the older ones being renovated, the Airports Authority of India (AAI) should consider building dedicated viewing galleries (as in the good old days) for visitors, so that the common man learns more about aviation. A fee may be levied for this, which will help bring in much-needed revenue to AAI. Also, photographic opportunities should be provided, as is the case at many European and Asian airports. Even Russia and China now allow airport photography.
- Jimmy J Wardia