Yeasterday, I was out to buy potatoes. The rates were higher by about 1 rupee per kg. I asked the shopkeeper and he told me that RBI has increased CRR and his loans from bank to establish his business needs to pay him more. So, to take care of the extra burden, he needed to increase the prices. "What is CRR" I asked. "Constantly Rote Raho" was the instant reply. I felt a pinching truth in his somewhatt comic (?) answer. The increasing rates have severly hit the retail market. The middle and the lower middle class (like me) are now afraid to go to the market. With increase in the home loan rates, I would like to bring one decrepancy that the central is imposing on the salaried class. We are paying a perquisite on company provided accomodation which is 20% of our annual salary. The central government tends to forget about the loss in HRA and irrespective of the area of residence, is rigid on taking tax @ 20%. Can you compare a house rent at MUMBAI or BANGALORE to that of DHANBAD or GORAKHPUR?
I am ashamed that I voted for this government. Instead of increasing production to meet the demands, this government is adapting the shortest route of creating an artificial cash crunch! Neways....THIS IS INDIA.
