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The article “Fiscal profligacy, cause of inflation” has correctly pointed out that the root cause of soaring inflation in the country is the reckless deficit spending the Centre has resorted to over the past two years (Business Line, August 29).

One feels, there must be a productivity-linked-wage structure in both manufacturing and service sectors in the country. The Government as well as the private sector must strictly follow it. Salary/wage fixed on affordability alone can only increase the money in circulation (without corresponding increase in output) and whip up the inflationary fires.

Also, it is imperative that the Government exercises strict control on revenue expenditure, which is assuming alarming proportions.

S. Ramakrishnasayee Ranipet

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