2010-11 budget is 'price rise budget', says LDF govt in Kerala

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 2% 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 that 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.

e 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.