Apropos the article “Big-Bang Budgets” (March 3), the Union Budget 2011-12 has nothing in it to be hailed as a reformist one. It has simply failed to fulfil the expectations of the corporate sector. But at the same time, the Budget has set aside a significant portion of total outlays for education, health, women and children, affordable housing, Scheduled Castes and Scheduled Tribes.
Unfortunately, the Budget lacks any effective inflation-control measures. Cost-push and demand-pull inflation are responsible for the galloping inflation. So, the finance ministry should consider minimising the rising input costs along with augmenting agricultural production. This will address the demand-supply mismatch.
Increasing the income tax exemption limit from Rs 1, 60,000 to Rs 1, 80,000 simply means a benefit of Rs 2,000 for taxpayers. Reducing the age limit for senior citizens from 65 years to 60 years and creating a new category – very senior citizens aged 80 and above – are all very well but this may add to inflation.
Deepa Durai, Thirupapuliyur
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