2010-11 budget is 'price rise budget': Kerala govt

Terming this year's Union Budget as a "price-rise budget", the CPI(M)-led LDF government in Kerala today said the hike in customs duty on petroleum products and excise duty on non-petroleum products would lead to increase in prices of all commodities.

"There is nothing in the budget to check price rise. The plan to mobilise Rs 46,000 crore, by increasing excise duty by two per cent on items mainly consumed by the common man, will only result in a spurt in prices of essential commodities," Kerala Finance Minister T M Thomas Issac said in his reaction to the budget proposals.

Stating the Centre had once again proved that it is "subservient" towards corporate houses by not levying any new taxes, he said the proposal to provide Rs 26,000 crore direct tax concession would only help them.

As far as Kerala was concerned, the budget proposals were very "disappointing" and total revenue allocation to the state from the Centre would be less, the minister said.

Isaac said that unless the Centre provides more resources to states, it would be difficult to bring down the fiscal deficit.

He also criticised the proposal to mobilise Rs 25,000 crore by disinvestment of Public Sector Undertakings and said the Centre was all set to "hand over" them to corporate giants.

CPI-M state secretary Pinarayi Vijayan said the budget was a "declaration of war" against the people and urged all sections of society to protest against its proposals.

"The living conditions of the people, already reeling under price rise, will worsen as there was not a single proposal in the budget to contain price rise of essential commodities," he said in a statement.

It was clear that the Congress-led UPA government was on the path of "extreme privatisation", he said, adding that records show increase in social inequalities.

The proposal for disinvestment of Public Sector Undertakings (PSUs) and sanctioning new banks in the private sector would have long-term effects on the economy of the country, he said.

The budget had also no suggestion for the development of Kerala and no new projects were sanctioned to the state, he alleged.