The year 1999 started with another attack on the state governments and the people by the BJP-led Central Government. On January 1, the Vajpayee Government unilaterally announced the reduction of interest rates of various Small Savings Schemes like National Savings Certificate, Kishan Bikash Patra, Indira Vikash Patra, Post Office Savings Account, Post Office Time Deposits, Post Office Recurring Deposit, Deposit Schemes for Retired Govt. and Public Sector Employees.

The state governments could take 75 per cent of the net small savings amount as loan for utilising the fund for development purposes. Because of this unilateral decision, the implementation of Annual Plan The decision has already affected adversely the resources of all the state governments. As for example, in West Bengal, the collection from small savings in Rupees were, in 1996-97, 210 million, in 1997-98, 370 million and during the current financial year the amount has already gone up to 500 million. In such an event, state governments will not be able to implement their Annual Plan and interest of the people in general and poorer section in particular will the affected seriously.

Past experience shows that this decision will encourage mushrooming of the chit funds schemes. In 1991 also, the reduction of small savings interest rates had encouraged formation of these chit funds where the people at large were cheated. On a promise of higher return, the small investors may now again be attracted in depositing their savings with chit funds. Thus, in absence of full-proof Government regulation, there is every possibility of their deposits being insecure. No doubt, the BJP-led Government is proceeding with anti people policies.

This unilateral decision has been taken in between the recently held meeting of the Standing Committee of the Inter-State Council held on December 19, 1998, and the meeting of the Inter State Council going to be held on January 21. In the meeting of the said Standing Committee, the Union Finance Minister announced that there would be further dialogue with the states on the issue. What was the urgency to take such a hasty decision on such an issue bypassing the statutory bodies, where the national interests are involved? This shows how the BJP-led Government is destroying the democratic structure of our country and is moving towards establishment of an authoritarian regime.

11^{th January 1999.}