Bonanza for government

With reference to the Editorial, ‘Fiscal dividend’ (May 24), the RBI’s substantial dividend payout presents a pivotal opportunity for the central government to strategically manage its finances.

By considering options like reducing market borrowing, increasing capital expenditure, and implementing targeted tax cuts, the government can effectively address revenue shortfalls while stimulating economic growth.

Redirecting funds towards personal income tax cuts can bolster consumer spending, essential for revitalizing economic activity amid sluggish consumption trends, laying the groundwork for sustained economic recovery and prosperity.

Amarjeet Kumar

Hazaribagh, Jharkhand

The RBI’s transfer of ₹2.1-lakh crore as surplus to the central government and the decision to increase the contingency risk buffer to 6.5 per cent of the central bank’s balance sheet could be termed a fiscal bonanza for the next government.

The higher than expected transfer, which may be due to an increase in interest income from the RBI’s foreign and domestic assets and forex transactions, would apparently help the next government bring about a steeper decline in the government’s fiscal deficit and offset possible revenue shortfalls in areas such as disinvestment.

Moreover, the surplus transfer of the RBI offers a wider space for the next government to improve the quality of its spending.

M Jeyaram

Sholavandan (TN)

People’s choices

The article featured in the ‘From the Viewsroom’ column is a must-read for those who want to lead a peaceful life.

Culture, after all, is broadening one’s outlook. As long as we mind our own business or do not poke our noses into other people’s business, things will be fine for everyone.

But, unfortunately, people around us do not realise it and this results in disharmony. It must be remembered that positive vibes are lost in the bargain.

S Ramakrishnasayee

Chennai

On middle-class identity

This refers to the article. ‘The middle-class identity is constantly changing,’ (May 24). The middle class is shrinking due to various factors. One is the financial factor which pushes down people from the middle class to poor status.

Growing consumerism, dwindling real wage and untamed inflation are already hurting them. They were identifying themselves with the upper sections all along and now with their growing economic demands and necessities is putting pressue on them.

The reservation policy has also its role in causing changes in their identity. They see themselves as part of the elite but are reluctant to vote. Their crisis in their place in society is depriving them off their due share.

AG Rajmohan

Anantapur