This is with reference to “Fiscal deficit looms large’’ (Business Line, November 23). Fiscal prudence is a victim of the financial system, mainly due to political reservations and compulsions.

Bringing down the fiscal deficit to 3 per cent of GDP may remain a dream.

The cost of bank credit pulls back various sectors of economy. Though the regulator is prepared to lower the CRR, the banks are hesitant.

The increasing service tax revenues and the divestment programmes (if it materialises as per schedule) may help revenue growth.

By shelving the agenda mooted by the Kelkar panel, the Government is being indecisive about fiscal consolidation.

The Government should take steps to check the fiscal deficit staring the economy.

C. P. Velayudhan Nair

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Religious divide

This is with reference “FDI in retail will hurt Muslims most” (Business Line, November 22).

Investment from other countries should come into India only when it is accompanied by technology (which is not available within the country), or when the quantum of money required for such projects cannot be generated within the country. I doubt whether India is in such a situation.

As far as the loss of earning for small retailers is concerned, we only need to see if the positive outweighs the negative. However, I am disheartened that the author has brought in a religious divide to this issue. This, in my opinion, is unwarranted, even though the data suggests what he claims. He also ends the article by saying all communities are fighting this together.

Soundarrajan

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(This article was published on November 25, 2012)
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