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When prime lending rates are as low as 4.25%, from where is the government going to get the money to pay 8.5% and 7.1%? So, rates will fall for sure. It will happen someday. Maybe not today, maybe not this budget, but perhaps in future. Before alarm bells start ringing, let us inspect a few things.Lending rates, repo rate, reverse repo rate are dependent upon many macro and micro economic factors. One factor is inflation, liquidity in the economy and money circulation. Another factor is public spending. There are few others as well.High Inflation means there is too much money in the market, demand is high, supply is low. To halt rising inflation, the central bank increases various lending rates.When people stop spending, demand drops and so do prices. This results in low inflation. At this time the lending rates are reduced.At one point of time - and not very long ago - sometime in 2009, the official inflation rate was around 11%. This below is the World Bank chart 1985 to 2019. It says between 2009–2011 this rate was around 11%. 2019, it say 7.66%. Today it is believed to be around 6%.But that is not the point. The point is inflation rate has dropped significantly. It had dropped to 4.67% (1999) to 4.29% (2005). These were the Vajapayee years. Here is another chartThe inflation rate can drop further. This means that you won’t require the same amount of money in future. But if inflation drops further.So if lending rates drop, all other rates will drop:Bank savings rate will dropBank/Post Office FD rates will dropPF/PPF rate will dropSCSS rates will dropBank loan rates will dropIndustrial borrowing rates will dropWe can’t have the cake and eat it also. We gain (because loan rates will be lowered), we will lose (because deposit rates will fall). The people who will suffer most are the old age people who are living off bank, post office deposits.Hence I advise on many answers, keep investing in Mutual funds to build a corpus. Only that way you can grow your wealth. Real estate is an option but it is not liquid money. Rent is not guaranteed 365 days a year and it may or may not be enough. So such annuity income is questionable. Build a corpus using Equity MF SIP route. You can supplement it using with Direct Stocks, if you feel confident. Do this during your years of earning. At retirement, invest this corpus in a mix of Debt and Equity (more weight on Debt) and use SWP to get monthly income.As of today, a retired couple, no dependents, no debt, own home, requires Rs. 40,000 to Rs. 45,000 in a Tier 1 expensive cities like Bangalore, Pune, Hyderabad, Chennai, etc. (Mumbai is a different basket case). It will be lower in cheaper cities and towns. As per my calculations, if one can get a return of 9% on a corpus of Rs. 1 Cr, this will be sufficient to carry through till age of 100 also and still leave nearly Rs. Cr in balance. This is of today; 25 years later figures will be different because of inflation.

The answer is depressingly simple: cut spending.However, an intelligent series of actions starting with spending cuts creates a virtuous circle which can potentially lift the United States out of the abyss of indebtedness and perhaps show a way to mitigate the oncoming disaster in the 2030’s as the $100 trillion unfunded liabilities of Social Security, Medicare and Medicaid come due.Streamline current spending and seek efficiencies. This article shows the Department of Defense could potentially save $125 billion over 5 years simply through streamlining the bureaucracy. Not a single servicemember, needs to be released, nor any tanks, airplanes or ships parked. Now consider using the same methodologies on EVERY American Federal Department and Agency, as a rough estimate you could make an overall saving of $300 billion in the same 5 year period.Seek out and end duplicate and overlapping programs. This could save between $100 to $200 billion per year, not to mention the savings in the productive economy in not having to deal with multiple bureaucracies for the same issues. Lets split the difference and say $150 billion/year.Illegal aliens cost the American taxpayer vast sums of money, estimated to be $116 billion/year. Taking strong action to remove and deport illegal aliens will save a considerable amount of money. While getting all of them at once isn’t a possibility, even removing 10% of the illegals every year saves $11.6 billionReform so called “entitlements”. These are by far the largest single expenditure of the US government, yet the budget process routinely extends these. 80% of the budget is effectively “off limits”, so opening this and imposing efficiencies and reforms could have vast effects on spending reductions.So before Entitlement reforms, we already have about $210 billion/year in savings. This is where we get to the second leg and create a “virtuous circle”. These savings go back to the productive economy in the form of tax cuts and reductions in government fees, providing a boost in the economy. This sort of fresh income placed into savings and investment could help propel the US economy to grow at a rate of 5%/year (President Trump’s desired outcome). The economic growth provides much higher tax receipts (this is already happening, but the current Congress and Administration is simply ramping up sending, the opposite to what is being proposed here). As well, increasing employment, higher wages (since downward pressure caused by illegal aliens will be reduced) and higher savings will reduce the pressures on social welfare pro grams, reducing Government spending even more. Increasing economic growth will also reduce the need for government subsidies to industry, which can also be gradually rolled back and eliminated as the economy grows.The real question lies in Entitlement reforms. The amount of monies being spent is astronomical, so any sort of saving will be disproportionately higher than anything proposed so far. The savings could be applied to paying down the US Debt, or contingency funding to start paying unfunded liabilities. The amounts owing are so vast that even a full trillion dollar a year savings will take over 22 years to pay off the US debt, or a century to pay unfunded liabilities - far beyond the horizon of any politician or political party.So targeting inefficiencies and using the savings to propel US economic growth is the only way to realistically deal with the problem.

Sid Kaskey and Mara Obelcz have outstanding Answers.To their thoughts I can add:Breaking the Question down,“…bipartisan solution…” - Part 1: “Bipartisan”, in the lexicon of the Republican-Trumpublican Party of the past 20 years, means “do it 100% our way”. My-Way-Or-The-Highway has been their consistent negotiating stance.“…bipartisan solution…” - Part 2: Never forget that the Republican-Trumpublican Party has several partisan camps in its own ranks, AND that inability to reach a compromise within those ranks has produced 12 years of Republican Caucus grid-locks under John Boehner and Paul Ryan. Even Mitch McCONnell has faced intransigence, particularly in the wake of the Trump Orc Insurrection. They cannot govern themselves, or reach “bipartisan solutions” in their own caucuses, so I suggest that they must first learn to govern and compromise within their own tribe: Bipartisanship begins at home.“…Republicans on Infrastructure”: Once again, the GOP cannot agree within its own ranks on what they want to do. They lack both consensus and motivation, otherwise why — in the past 17 years — did Republicans do nothing on infrastructure? That 17 years includes the eight years that Republicans controlled both Houses of Congress (2003–2007, 2015–2019) and twelve years during which the GOP controlled at least one House plus the Presidency (2001–2007, 2017–2021). Their only stab at “infrastructure” was a joke: The Great Wall Of Trump — paid for by Mexico…er..soon…er..by funds looted from our Military budget. [In that 17 years, Democrats controlled both Houses + Presidency for 2 years and 100-or so days - 2009–2011, 2021-?? and produced recovery from Recession, the ACA, a world-leading COVID vaccination plan, and a rescue for millions of Americans]“…tax increases on corporations…”: Oooooooo — scary. The OP is unclear as to which of the following constitutes the dreaded “tax increase”:Biden’s partial restoration of the nominal* Corporate tax rate to 28% from Trump’s addled cut to 21% (an attempt to put more money in the Trump crime family’s own pockets, as usual). The nominal rate was 35% before Trump’s regime gave away the store. United States Federal Corporate Tax RateThe intent to eliminate loopholes that have allowed America’s largest corporations to pay much less than the nominal rate for decades. As we all have heard here on Earth-1, the round Earth, several corporate colossi have managed to pay zero tax in recent years.( * ) The nominal rate is nothing more than a ceiling — a maximum that few corporate tax accountants allow their clients to touch.In actual fact, U.S. corporations have benefited from so many loopholes — and so little IRS oversight — that they have skated by with much lower tax bills. The term-of-art is “effective tax rate”: What corporations actually pay. Here is how America’s effective tax rate stacks up, both in comparison to its industrialized competitors, and over the past 7 decades:SO dry those crocodile tears, Republicans: The Nation and the world will be better off when ALL Americans — billionaires and not — and ALL of America’s profit-looting enterprises pay their fair share.