The decision is an attack on the vast majority of the toiling people. The reduction in interest rate on PPF will reduce the earning of the workers and employees and the same in Small Savings Schemes will reduce the earning of the low-income group. Some investment analysts think that the cut in interest rate on PPF will erode an individual's wealth by more than 24%. When the cost of living is rising progressively at a faster rate due to rise in prices of essential commodities, this reduction in earning of the vast majority of the people is bound to reduce the purchasing power and the domestic market.

The decision has adversely affected the resources of the state governments too. The source of a considerable portion of the plan expenditure of the state governments comes from the major share of deposits against Small Savings Schemes in the states. Reduction in deposit rate will result in depositors flocking to mutual funds, which offer better return. This will reduce the resources of the state governments and force them to down size their plan expenditure. At the same time, the deposits in many mutual funds might not be secured in the long run.

In the name of developing our economy, this decision has been taken. The investors, who are involved in scams, have come forward to welcome the decision. But, the decision bound to affect our economic development adversely.