Great cartoon

Looks like Dipankar Bhattacharya’s cartoon ( By the Way , February 6) perfectly describes the status of Indian PSBs vis-à-vis black-marketeers. Although PSBs have been directed to follow the guidelines of the RBI and the finance ministry and abide by the law of the land, they have gone all out to help leveraged corporates with cheaper finance.

The stress shown in the economy has helped many use financial wizardry and divert the funds of banks. It is well known that corporates have been over-leveraged and loans have been granted to novices, new entrants and less credible promoters without assessing their capability to repay. PSBs’ archaic assessment system and lack of expertise in human resources have wreaked havoc. It is high time the watchdogs woke up.

Rahul J Gautam

Bengaluru

It’s not negative

This refers to ‘A well-intentioned budget’ by C Rangarajan (February 6). When fiscal deficit is within manageable limits, government borrowing becomes less, which leaves liquidity in the market. This will make the job of the RBI easier in inflation control. This may also lead to a reduction in policy rates, which in turn will boost borrowing and investment. When the FM has not reduced corporate tax across the board, at least he could have removed Dividend Distribution Tax. DDT is nothing but double taxation and basically wrong. The best part of the Budget is it has not attempted to do anything negative which may affect growth. It is a different matter that the FM could have done better.

S Kalyanasundaram

Email

Job creation depends on the level of growth spurred by the investment climate created by the finance minister. Instead of taking stringent measures against tax evaders, only soft steps have been taken: this will not work in a country like India where the majority do not have a voluntary tax compliance mindset. This is amply proved by data released by CBDT where only 0.1 per cent are shown earning an income more than ₹10 lakh.

The budget had failed to address issues faced by senior citizens. Only one scheme floated by LIC to provide an assured pension has been announced; this will give effective returns only when inflation is under control in the long run. The proposed step to use bearer bonds for political funding is fraught with risks. Bearer bonds have historically been the financial instrument for money launderers and tax evadersto conceal business transactions. For this reason issuance of bearer bonds were banned in the US in 1982. State funding of elections would have been ideal.

Srinivasan Velamur

Chennai

It’s a positive indicator

One of the objectives of MNREGS is to offer employment in rural areas when there is little or no income for labour during lean agricultural periods. The scheme creates job opportunities and not necessarily jobs as the latter is dependent on alternate job availability in agricultural operations. Therefore, it does not seem right to project fewer jobs under the scheme as under-performance. To say that “despite ₹48,000 outlay, the scheme may create lesser jobs this year” (‘Budget bonanza for rural job scheme’ by Muthukumar K and Seetharaman R, February 6) is likely to be interpreted as entirely a shortfall in implementation. Less utilisation of the scheme could even be a positive indicator of improving job opportunities in rural areas on self-momentum not needing external stimulants like this scheme.

NS Parthasarathy

Chennai

Cleverly orchestrated

Sasikala’s Natarajan elevation to chief minister was well orchestrated by her cohorts to make it appear as if she was merely acceding to the wishes of her party. Her rise to the top posts both within the party and in the State administration may have been a smooth affair but facing the electorate and winning their confidence and trust is not an easy task. Given the discernible discontent in the AIADMK over her elevation, it is doubtful if Sasikala will be able to prove her credentials in the rough and tumble of State politics.

M Jeyaram

Sholavandam, Tamil Nadu

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