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
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