Kudos to Business Standard’s Budget analysis two years ago when it perceived the Budget to be an inflation-oriented one. The impact is now being felt. Inflation is the creation of the government: the contribution of former finance minister P Chidambaram, ably assisted by Montek Singh Ahluwalia and approved by Prime Minister Manmohan Singh. It’s well known that Mr Chidambaram was only interested in increasing the revenue by taxing. Unfortunately, the current incumbent has followed in his footsteps.
If the government really wants to control inflation and help the aam aadmi, it should immediately either withdraw or reduce the draconian service tax. It affects every household directly and indirectly.
Also, the amount spent on the National Rural Employment Guarantee Act should be reduced. People should instead be offered work in farms, industries and the employer should be provided with these funds. Not only will this improve industrial and farm output, but it will also ensure 100 per cent funds reach the people. This will also help bring down inflation considerably.
B K Goud, Hyderabad
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