This refers to ‘We withdrew stimulus final yr!’ (ET, Mar 4). TT Ram Mohan has rightly urged that the tax-GDP ratio measures structural enchancment. The FM should rethink his medium-term debtto-GDP goal. Dropping substantial revenues by slicing I-T charges appears odd. If oil breaches $75-80, the FM should hike petroproduct costs and borrow extra. Most sectors like FMCG are elevating costs sharply as a consequence of hikes in excise duties and gasoline taxes. Macro-economic situations like hefty authorities borrowings, tight financial management and a fiscal technique counting on unsure disinvestment/spectrum public sale proceeds, will impinge on non-public investments in 2010-11.
D B Naik
Mumbai, March 4