Injustice done to KBK, says Naveen

The Pioneer, March 01, 2007
Pioneer News Service | Bhubaneswar
... a disappointing Budget

Chief Minister Naveen Patnaik on Tuesday slammed the Union Budget and termed it as disappointing. "This Budget does not provide relief to the common man and no major support has been given to the KBK areas," he said.

Patnaik said that rising inflation affected the livelihood of the common man directly. There has been no definite and concrete measures to contain inflationary pressures.

He further said that in the agriculture sector, adequate outlay has not been provided for investment in agricultural infrastructure or in support to its marketing. "It is seen from the Union Budget that the injustice done to KBK districts has not been corrected. The State Government had asked for Rs 500 crore for development of KBK districts whereas, it is disappointing to note that the Union Budget has envisaged only continuance of the existing provisions," Patnaik added.

He further said that the Union Budget proposals include levy of export duty on iron ore and chrome. The proceeds of such a levy should be transferred to the States in full.

The Union Budget proposals include reduction of Central Sales Tax from 4 to 3 per cent with effect from April 1, 2007. "The loss of revenue on account of such reduction in the rate of CST should be fully compensated by the Centre to the State," Patnaik said.