Letters to the editor
With the presentation of the Union Budget barely 40 days away, in accordance with the yearly ritual, a lot of “expectations” from the Finance Bill 2015 are being aired; especially from the favourite milch cow of all the FMs, the salaried class and the the pensioners. Hopes are high about a possible a raise in the IT slabs. However, such a proposal will clash with the provisions of the Direct Tax Code, which envisages removal of all the savings incentives hitherto available for the salary earners and retired assessees. Where the DTC, the brain-child of the previous UPA regime, stands as of today is not known.
More rate cuts needed
The clamour for a cut in interest rates growing louder in the recent times was a matter of fact. The decision to cut key policy repo rate by 25 bps to 7.75% with immediate effect by RBI on January 15 is, therefore, on expected lines. The surprise element in announcement, however, is the rate cut ahead of the scheduled date of the announcement of monetary policy review on February 3. Raghuram Rajan, the RBI Governor, has the knack of keeping the market guessing and undoubtedly, his policy initiatives have been some of the best in the recent times with results coming on wanted lines. The point is to create a kind of conducive climate where a sustained recovery should translate into a sustained growth with credible measures emanating from all quarters. With the new government, in place for quite some time now, showing signs of good governance, the issues India was confronted with are beginning to settle down meaningfully and gradually. Business sentiments are improving fast. There are signs of revival witnessed all around and moderation in inflation level is significant and on expected lines. The country needs a deeper rate cut to get back to the high growth mode.
Umashankar Srinivasan, Nagpur
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