The rich is becoming richer and the salaried class is the sufferer all the time. After roll back on tax on EPF proceeds, the Government has reduced the interest rate of PPF from 8.7% to 8.1%. In addition to that there is also cut on most small saving schemes, including one for girl’s child and senior citizen. The rationale is that the cut in small savings interest rate would help economy eventually move to lower overall interest rate regime, thereby helping all, particularly low-income and salaried classes. Thus, the unkind interest cuts is affecting the salaried class. After giving peanut of benefit to salaried class, slowly and steadily the benefits already given were slowly taken back one by one.
(The views expressed by the author in the article are his/her own.)