Flaying the Narendra Modi government for hitting the common people, especially senior citizens, the Centre of Indian Trade Unions (CITU) said the drastic cut of interest rates in small savings would end up “favouring speculators”.

In a statement, CITU General Secretary and Rajya Sabha MP, Tapan Sen, said; “On March 16, the first part of the budget session of Parliament ended wherein the Union Budget was presented and discussed. The Budget propositions did never mention any such plan of the government …. Parliament stands bypassed. This is condemnable.”

He said the government did not even bother to spare senior citizens’ deposit schemes and monthly income scheme, on which lakhs of retired employees heavily depend.

Also, the the cut in interest rate, ranging from 40 to 130 basis points, on small savings instruments, such as Public Provident Fund, Postal Monthly Income Scheme, Post Office Saving Deposits, Girl Child Savings Scheme, Sukanya Samridhhi Yojana, Kisan Vikas Patra, and National Savings Certificate will hit the common people hardest.

“This is, in fact an integral part of the overall game plan to divert the social security savings of the people, including the workers,” he said, adding that this was reflected in the now withdrawn initiative to tax EPF withdrawal.

Sen alleged that the move to disincentivise small savings instruments through government-run agencies was “designed to promote chit-fund type institutions''.

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