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The current Budget has a lot of expectation for the “aam aadmi” with regards to price rise, agriculture, income tax benefits and infrastructure development.

The present tax level could be enhanced to at least Rs 1.5-1.75 lakh. The endeavour should be to reduce tax rate and widen the net. The maximum rate should not be more than 25%. An alternative method could be to introduce a compulsory small rate tax irrespective of income level up to a cap of say Rs 10 lakh. Setback in agriculture front is not because of credit crunch, but insufficient market. A rational support price system rather than subsidies is needed. The agriculture market can be expanded by curtailing imports and inducing the consumption of domestic agriculture produce. More incentives for food processing to be initiated. This will boost the dwindling agriculture out put to a comfortable level.

Infrastructure needs to be taken care further. More investment is to be attracted. A proper blend of FDI/FII and domestic capital will be ideal in this field.

P.K. Viswanathan, Faculty Member,

Indian Bank Staff Training Centre, Thiruvananthapuram

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