Pragmatic approach

Sir, - It cannot be gainsaid that the task of the Finance Minister, particularly to balance the budget and to contain the expenditure and have the budget deficit under acceptable control is a formidable one.

However, it is not impossible to do this, provided a strong will is displayed by the FM. And for this, what is needed is a pragmatic long- term fiscal policy with innovative and bold ideas. For example, issue of earthquake bonds to attract black money investment and to grant immunity to these investors would enable the government to solve the twin problems - first of having finance available to the government at a lower rate of interest at 5 per cent and secondly, to unearth black money and utilise the same for useful nation-rebuilding work. Further, the rates of income tax are already high and are to be gradually lowered as a spur to tax honesty and voluntary compliance.

R. N. Lakhotia,

New Delhi

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Section  : Opinion
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