Reduce the tax rates and take away all exemptions.People will save as savings are in their own interest. The Government need household savings for capital formation and for this the Government has to facilitate savings.This is possible by controlling inflation, running the banks efficiently and profitably, discouraging investment in gold and real esates, developing a healthy and strng capital market with maximum retail participation, reducing corruption in the society and avoiding generation of black money. All these are possible if the Government is strong, administration is efficient, accountability is fixed, transparency is maintained,information is gathered adequately and put into optimum use to draw appropriate policies etc. The present vicious circle of lower savings, lower investment, lower production,high inflation, needs to be broken.
Dr.T.V.Gopalakrishnan
(This comment is given in BS).
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