The policy issue being addressed is the incentive for home loan borrowers and the objective for this policy is to help the home loan borrowers to overcome the difficult financial conditions (Agencies). This policy of allowing the home borrowers an additional deduction of Rs 1 lakh also aims at providing employment to many people in the construction industry (Agencies). The home loan includes the loan borrowed for the construction, repair, purchase or reconstruction of a house (Agencies). The interest that is to be paid on the money borrowed on loans is reduced.
The incentive will encourage investment in the industry that will help in improving the economy of the country (Agencies). The number of people borrowing the loan to invest in the construction of loans will increase (Agencies). Because of the increase in the number of houses being built, the employment in the construction industry is becomes available (Agencies). The citizens get a job whereby they can earn a living.
The incentive by the government to reduce the tax deduction on home loan borrowers was a strategy to help the government achieve many things as a result. The employment opportunity created will ensure that citizens are engaged in activity and this reduces cases that are unlawful (Agencies). The crime level is reduced because many people can earn a living from the jobs created and this will ensure they don’t resolve to dubious means of earning a living (Agencies). This could include robbery with violence, stealing among others.
The policy is evaluated by allowing the individuals who take a home loan for the first time additional tax deductions of up to Rs 1 lakh for the financial year 2013/2014 (Agencies). The government will be able to bring back on track the Current account Deficit. The primary alternative the government is seeking to consider is to introduce the allocations and schemes for the ST, SC and women (Agencies). Another alternative will be to plan for the food security by providing additional allocations. The officials, that is, the government is focusing on a sustainable growth policy by setting a budget that will achieve the goal (Agencies).
In order to arrive at this theory the government must seek consultation from various bodies various organizations and bodies of the government. It means that the policy must have been reached as a result of group theory. This ensures the decisions reached at does not for an individual gain but for the benefit of the whole nation as this would affect the citizens and the growth of the government (Agencies).
The political systems and particularly the economic system that binds for all citizens were also used. The decision making theory system mainly emphasizes the way in which the non-human and human respond to changes in their environment. The theory system of decision making process identifies the particular elements in an organization that will affect the outcomes as a result of the decision made (Agencies). The official had therefore considered that by deducting the tax on the home loans borrowed the government will maintain its relationship with the citizens at the same time empowering the economy.
References
Agencies. (2013 February 28). Tax deduction of Rs 1 lakh policy for Home Loan borrowers. The Los Angeles Times, pp 25. Retrieved from http://economictimes.indiatimes.com/news/economy/policy/budget-2013-home-loan-borrowers-allowed-additional-deduction-of-rs-1-lakh/articleshow/18725752.cms
