The Hindu Business Line : Workable measures

The Government’s warnings to hoarders and cartels, and other quick-fix solutions, are unlikely to control inflation. On the contrary, the Government should concentrate on the following:

A single major factor contributing to inflation is service tax, which is arbitrary, discriminatory and at an exorbitant rate of 12.36 per cent. It is but natural that those who pay service tax will pass on its incidence to their customers. Besides, this tax entails increased administrative costs, corruption and harassment.

It is time the Government introduces a wage ceiling. How can the common man and those below poverty line manage to get essential commodities when corporate executives drawing salaries in lakhs per month and when Government staff with recent bountiful increases are flush with funds? It will only widen the gap between the poor and the rich.

The Government should control its expenses. One major factor leading to the high inflation is the fuel cost. Yet when a Chief Minister or a Union Minister travels, there is a convoy of cars. Other expenses directly linked to the ministers/politicians, such as the vast amounts paid on their security, can also be brought down to the barest minimum.

Increased agricultural production. Sizeable areas of cultivable lands are being used up for buildings and economic zones. The growth of economy cannot be measured in terms of a booming stock market which only produces paper money. There is actually no increase in tangible production or assets.

To control inflation all forward and speculative business in shares and commodities has to be restricted; if not stopped.

Population control has been put on the back-burner. Any increase in production/growth will be surpassed and nullified by the increasing population.

T. A. Rajagopalan Chennai