Monday, 21 March 2016

A comment on PPF and NPS rate cuts

My Comment on an article "Finance Minister Arun Jaitley defends PPF rate cut, attacks Congress" published in economictimes.com Dated 20/03/2016 at 10:10 pm.

"It may be reasonable from economic point of view. 

But, government could have shown some generosity by maintaining the rates of interest intact on PPF and NPS schemes. Actually, it needs to be raised according to the rate of inflation and not to be decreased at any circumstance. 

You are grabbing the meagre income earned by salaried class and other employees who are saving for their future lives and security. Already their income is very low as compared to the increasing inflation rates. 

You can on the other hand offer lower rates on bank deposits and MFs to fill up the deficit in government revenues.That can be tolerated as investments and deposits are extra incomes in most of the cases."

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