This is in response to the Editorial “Tweaks and treats” ( Business Line , March 1). Budget 2011-12 has nothing in it to be hailed as reformist one, since it has simply failed to fulfil the expectations of corporate people. At the same time, it has set aside a significant portion of total Budget outlays for education, health, women and children, affordable housing, the Scheduled Castes and the Scheduled Tribes, and minorities.

It is really unfortunate to see the Union Budget without a single effective measure to keep inflation under control.

It seems that factors such as Cost-push and Demand-pull are responsible for the galloping inflation.

Hence, the Finance Ministry should consider such measures as to minimise the rising input costs along with augmenting agri-production in order to equalise demand and supply thereby reduce food inflation.

The announcements with regard to individual income-tax — such as increasing the income-tax ceiling from Rs 1, 60,000 to 1, 80,000 simply translate into a benefit of Rs 2,000 in favour of tax-payers, reducing the age-limit for senor citizen to 60 from 65 years of age and creating a new category: very senior citizen aged 80 and above — are welcome. But the concern is, would not all these pressure inflation to go up further?

Deepa Durai

Cuddalore

The ‘over-80' taxpayers

“80-plus and super too” ( Business Line , March 1) was interesting. The so-called increase in the taxable limit, however, is illusory. It is far less than what is justified by the big increase in the cost of living. The paltry concessions given to senior citizens in the age group 65-80 have been more than offset.

If the cost of living is taken into account, the limits in every slab justify the increase. The senior citizen's “main preoccupation” nowadays, apart from “reminiscing about the past,” is to think about the next hospital visit. At one stroke, the cost of health expenditure has been hiked by 10 per cent by bringing practically every private hospital service into the service tax net. Many senior citizens have to go to private hospitals even for outpatient consultation and the consultation fee could be classified as ‘service'. As regards over-80 tax-payers, the IT Department has mentioned that the number is only 15,000!

M. Subramanian

www.thehindubusinessline.com

Possible misuse

Senior citizens above 80 years need less amount of money than younger citizens. No doubt, their medical expenses are far higher and they do not come under insurance, but this rule may be misused by businessmen for converting their Rs 5 or 10 lakhs of black money to white.

Instead, the government can ask the insurance companies to increase their maximum age limit for insurance and compensate them appropriately.

Vijay Sharma

www.thehindubusinessline.com

Incentives for seniors

It is fine, what Pranabda has done for senior citizens in the Central Budget. In the same way, each and every State should also come up with some innovative ideas of providing incentives to senior citizens. For example, free bus passes for travelling within a city or in the State Government buses between, say, a fixed time of 10 a.m. to 5 p.m., as this will enable the senior citizens to come out of their houses (shells) and overcome their boredom and loneliness. Governments may not lose heavily as overuse of the facility depends on lot of factors Good health, having a lot of friends, eagerness and ability to move around, etc.

The State Governments can very well attempt this measure as this would go a long way for senior citizens being recognised by the society as a contributor to nation's wealth.

A. R. Mahadevan

www.thehindubusinessline.com

Home loans

With reference to “Booster for home loan segment ( Business Line , March 1), it does look like good news, however no one is sure of the effect for many who have already taken home loans in this range. Everyone knows that it is important to understand at what rate one is taking the home loan, and it is also important to know how the rates change over the course of the loan for many years.

It would have been better had the reports made it clear to the readers whether this 1 per cent reduction is applicable to existing home loans also or not. Maybe quoting the FM will have higher hit rate for news, but clarity of what needs to be understood from a proposal is equally important.

Swaraj

www.thehindubusinessline.com

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