LDF Govt's 1st budget targets 'rich' for more resources

Thiruvananthapuram, June 23 (UNI) Targeting the 'rich' with more tax burden, the new Left Democratic Front Government in Kerala today proposed additional resource mobilisation of Rs 105 crore in the revised budget for 2006-07, with overall deficit of Rs 716.56 crore.

In his nearly 135 minute budget presentation in the Assembly, Finance Minister Thomas Issac claimed that only the rich sections of the society would be affected by the new tax proposals.

As per the proposals, the prices of gold, several home appliances, building materials, soft drinks and health drinks would go up. However, tax on medical equipment like dialysis instruments, blood tubing and hearing aids were brought down to four per cent from 12.5 per cent.

A sum of Rs 60 crore was set apart for providing rice at Rs three per kg for below poverty line (BPL) sections. Besides, several measues were announced to revive the crisis-ridden agriculture sector, tradtional industries and public sector units.

The Minister said Rs 174 crore had been earmarked for the agriculture sector and Rs 57 crore for traditional industries.

Setting up an Agricultural Debt Relief Commission with quasi-judicial powers to free debt-hit farmers from the clutches of private financiers and giving agriculture tax exemption for coffee, tea, cardamom and peper growers were some initiatives.

Several corrective measures were proposed as the one presented by the previous government was an unrealistic one, the Minister said.

However, the Opposition United Democratic Front described the budget proposals as a mere political document. 'The Minister took more than 30 minutes to criticise the previous government in his budget speech,' Kerala Congress(M) leader K M Mani said.

Leader of the Opposition Oommen Chandy said the budget concealed several realities and it lacked clarity.

More UNI CR SHB VV1753