This refers “Finance gets the better of economics” by Sunanda Sen (March 17). In a growing economy, the economy and finance are closely related and decisions on one would reflect on the other. While the economy should be built on strong basics and flexible in absorbing changes in the management of finance, changes in economy should be crafted with care. The changes in finance would reflect quickly in markets and thus in commodity prices and in the life of people. But any change in economic factors will take time to respond to the day to day life.

Thoughtful consideration should go in framing economic policies because the impact could be negative on the financial side. The changes in the fiscal deficit, foreign exchange, inflationary trends and markets are related to monetary policies which would impact day to day life of the common man due to variation in commodity prices and shortfall in domestic savings. It is, therefore, necessary that changes in economic policies are framed with an eye on the impact on financial status also

TR Anandan

Coimbatore

The author is wrong when she says fiscal consolidation will squeeze the poor. Inflation will hurt the poor more and it is a form of tax which will be held in check if fiscal consolidation is continued. If the inflation is contained, the RBI will have more room to cut rates, which will have an expansionary effect on the economy. We need to have an environment with contained inflation and interest rates for growth to return.

Providing a job is the best possible welfare you can give to any individual and the government by adhering to the path of fiscal consolidation has done the right thing for our macro economic environment.

CR Arun

Email

Aadhaar concerns

With the hasty passage of the controversial Aadhaar Bill, it looks like the Aadhaar card is here to stay. The designation of the Bill as a Money Bill was a mere ruse to avoid ‘legislative scrutiny’ by the Rajya Sabha.

Now that it has become a fait accompli without the amendments proposed by the Opposition, there is no hope of escape from certain retrograde provisions of the law unless they are eventually struck down by the Supreme court for violating the constitutionally guaranteed fundamental right to privacy. Initially, it was said that the enrolment was ‘voluntary’ and ‘optional’. The apex court has also ruled as such. But Aadhaar is now made mandatory for ‘receipt of subsidies, benefits and services’. A ‘nationalist’ government incapable of drawing the line between ‘national security’ and ‘social control’ could rely on the Aadhaar law for the suppression of dissent purely in the furtherance of its own political interest.

The BJP hails the Aadhaar as a ‘game-changer’. But how it is going to change the game remains to be seen.

G David Milton

Maruthancode, TN

Insurance hurdles

The government insurance arm, LIC, whose objective is to cover and address the financial needs of common man, has lot of riders built in its policies. For instance, in the money-back policy the policy holder is given a percentage of its premium every three years, whereas in the case of other policies, the policy holder has to apply for a loan to get some money and has to repay the loan resulting in high payouts. All insurance companies should make both the options, money back and loan, available in all policies to yield benefits for lower and middle class.

Vikram Sundaramurthy

Chennai

King of cunning

It seems banks are having tough time with a scheming man like Vijay Mallya. He might have failed in his business ventures but seems to be excelling in the art of dodging his lenders and poor Kingfisher Airlines staff.

It is really amazing to see the limitations of our law and enforcement agencies in tackling and bringing to book people like Mallya who have gulped some ₹9,000 crore of public money, and yet evade arrest.

VS Ganeshan

Bengaluru

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