FM must rethink

This refers to ‘We withdrew stimulus past year!’ (ET, Mar 4). TT Ram Mohan has rightly suggested that the tax-GDP ratio measures structural improvement. The FM indispensable rethink his medium-term debtto-GDP target. Losing important revenues by cutting I-T rates seems odd. If lipid breaches $75-80, the FM volition person to hike petroproduct prices and get more. Most sectors similar FMCG are raising prices sharply owed to hikes successful excise duties and substance taxes. Macro-economic conditions similar hefty authorities borrowings, choky monetary power and a fiscal strategy relying connected uncertain disinvestment/spectrum auction proceeds, volition impinge connected backstage investments successful 2010-11.

D B Naik
Mumbai, March 4