The Hindu Business Line : Pragmatic Budget

First of all, there is a laudable attempt to reach the fruits of globalisation to the poor segments by way of write-off of agricultural loans. The PSU banks stand to gain a lot by NPA recovery and recycling of funds. The demand push growth likely to be caused by larger disposable income in the hands of the middle-class will combine with supply side growth in catapulting the economy beyond 9 per cent in 2008-09.

The interest rates on deposits and advances are also required to be maintained at current levels.

Any decline in deposit rate below 8.50 per cent will siphon off thousands of crores of rupees from the saving class to the investing class, thereby distorting long-term capital formation and social equity.

Ashok Kumar Agrawal Ghatsila

More Stories on : Letters | Budget

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
The waiver and beyond

Sizing up the tax measures in Budget 2008

Return of prima facie adjustments

Effect of service tax changes

Promoter, public disconnect

The gold rush

Is the ‘assessee in default’ amendment aimed at Vodafone?

Revision in case of brief assessment orders

Curbs on rice exports

Pragmatic Budget

From outlays to outcomes

Focus on the poor

Farm loan waiver

Spur for women