ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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The Budget- Tax Cut for Companies

 need not, therefore, be taken seriously in discussions of the budget's likely inflationary impact. In other respects, however, the list is quite revealing. In the first place, it tells us something about what the government regards as "items of common interest to the consumers'' or, to put it differently, which are the sections of people whom the government is most anxious to protect against the ravages of inflation. The composition of the list is indeed very interesting in this regard. The very first five items in the list are; skimmed milk powder, condensed milk, butter in packs, dried vegetables in packs and packed fruits (like pineapple slices). Then follow more such items; sausages, glucose, chewing gum, sugar confectionery, chocolates, biscuits, jams, squashes, instant coffee, sausces/ketchup and, finally, smaller refrigerators of upto 100 litres capacity. It should be obvious to anyone that only a tiny minority of the country's population enjoys incomes and purchasing power large enough to be able to afford to have the above items as part of its consumption patterns and life styles. It is clear, however, that when the government worries about the adverse effects of inflation it is in fact thinking mainly of this tiny minority.

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