FREEZING HIGH INCOMES


April 8, 2016
FREEZING HIGH INCOMES

This refers to the report “Govt. Staff’s Pay Hikes may Fund Bank Capitalisation” (Economic Times, Innovative Approach, April 8, 2016). One gets a genuine doubt. What was the Budget exercise spanning almost six months about? The doubt emanates from the piece meal approach of GOI to resources mobilisation and deployment of available resources which changes on a day to day basis. This is happening to taxes, gold management and management of schemes like NPS/EPF/PPF and small savings.
The idea to partly freeze the income of those earning high remuneration and diverting the temporary surplus(as these are, in essence, borrowing) generated for development purposes is laudable. But policy in such cases should apply uniformly to the income of all taxpayers and not just the government employees. It is the Govt’s prerogative to plan priorities of economic growth and formulate policies to achieve targets set. Such policies need to be transparent and should not impair the trust of savers and workers.


M G WARRIER, Mumbai

Comments

Popular posts from this blog

NAVAGRAHA STOTRAM

THE SUNSET OF THE CENTURY

The King of Ragas: Sankarabharanam