Shift in govt policy

Refer to ‘Finally, I-T cuts’; the middle class had been feeling oppressed and financially squeezed over the years due to rising inflation and stagnant wages. Having followed an investment-led growth strategy, the government seems to have effected a policy change towards consumption-led growth. Sluggish consumer demand was a major factor behind the tardy growth in the economy. Policies have been tweaked to address the problem of underconsumption. Earlier, there was a mismatch between supply and demand (the former being higher). Increase in consumer demand will not fuel inflation. However, sustained income growth, inflation control, an expanded tax base and a widened social security network are necessary prerequisites to improve the financial condition of the middle class.

Advertisement

Roshan Lal Goel, Ladwa

Symbolism in tax relief

Apropos of ‘Income tax relief alone can’t spur consumption’; tax relief is expected to increase disposable incomes and set in motion a multiplier effect on growth and employment. However, its value will depend on how much of the additional income is actually spent on consumer goods, housing etc. It also depends on consumers’ confidence in growth prospects of the economy. But more important than the economic impact is the symbolic significance of the move. It should not be ignored that the interests of the income tax-paying middle class, which does not make up a big share of voters, were acknowledged. The salaried class has always had to bear the brunt, unlike rich farmers who have disproportionate landholdings but do not pay tax on their incomes.

Chander Shekhar Dogra, Jalandhar

Unfair to some taxpayers

Refer to ‘Finally, I-T cuts’; a key issue that has not been addressed is the tax burden on individuals earning between Rs 12 lakh and Rs 12.60 lakh after standard deduction. Someone earning Rs 12 lakh pays no tax, but an income of Rs 12.01 lakh results in Rs 60,150 tax. This sharp increase in tax seems unfair, particularly when the aim is to help every citizen retain up to Rs 12 lakh for spending. To address this, tax calculations for incomes up to Rs 12.706 lakh should be adjusted so that individuals can retain the

Rs 12 lakh threshold. Uniform tax treatment across all income sources is needed.

K Kumar, Panchkula

Attempt to win back trust

Apropos of ‘Home is where the FM’s heart is’; the tax relief is a natural consequence after having taken so much from the middle class for a decade and keeping in mind the political fallout — evident in the diminishing voter support from Uttar Pradesh. In an attempt to right the wrong, the Budget now includes provisions seemingly crafted to win back the trust of the middle class. It is apparent that this is another gimmick of our government, akin to the ploys it comes up with when elections are around the corner.

Yugamdeep Tiwana, by mail

What about other states

Refer to ‘Bihar largesse’, there is nothing wrong if Bihar has been given preference with a generous financial aid in the Budget. Bihar lags behind other states in many important parameters. A large number of people migrate from this poor state in search of employment opportunities. But, at the same time, the Finance Minister should have taken care of states like Uttar Pradesh, Odisha, Himachal Pradesh and Jammu & Kashmir. They, too, are grappling with financial woes that need to be addressed. If the Centre does not address their problems, who will?

Ravinder Kumar Jain, Ludhiana

Unpredictable Trump

Apropos of ‘When America’s exit from WHO was averted’; the stature of world leaders was much higher earlier when democracy and consensus were the bedrock of international politics. Today, that space is occupied by the likes of Donal Trump. Known to be unpredictable and loud-mouthed, within hours of starting his second innings, he pushed several reforms, prompting trade wars and bringing commotion in the world order. He abhors criticism and is a hard nut to crack. His love for America seems to be greater than his concern for humanity.

BM Singh, Amritsar