Letter to BS: Lowering of interest rates for small savings not a wise move

This refers to “Household savings drop to 6.5% of GDP in FY 19” (February 4). At a time when the rate of household savings has fallen to the lowest in eight years, the government has introduced the option of exemption-free tax structure. It is looking at lowering the interest rates of small savings and reducing tax incentives for them. This is not a wise move at a time when the rate of household savings is falling. India has practically no social security system for the old and the unemployed. It has no real efficient and affordable public health system. Small