The two stimulus packages already announced were largely intended to ease supply side. Now let the Govt ease demand side by pumping in more purchasing power in the hands of the people. The basic IT limit may be raised to 2 lakhs and 2.5 lakhs for women and 3 lakhs for senior citizens.The mediclaim policies for senior citizens are costly and are with a lot of riders. Govt may ask the four PSU insurers to formulate simple mediclaim policies for senior citizens with a cap in the amount at say 2 lakhs with affordable premium and without troublesome riders.STT may be abolished in phases. Taxing dividend income was abolished since it was tatamount to double taxation of the profits of the company. In its place DDT (Dividend Distribution Tax) was introduced. This is also a surrogate way of taxing the profits of the company doubly. Hence DDT deserves to be abolished.All subsidies except in agriculture should be abolished in phases.Agriculture and Rural development need special focus in the Budget 2009.
R.K.KUTTY,Retd Ch Officer Bank of India Coimbatore.
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