February 28, 2011 6:18 PM

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Reduction in subsidy on Food, Fertiliser, Petroleum products to hit consumers: Yeddyurappa

Reacting to the Central Budget, the Chief Minister of Karnataka B S Yeddyurappa has felt that reduction in subsidy on Food, Fertiliser and Petroleum products will hit the consumers and increase inflation. Yeddyurappa also pointed out that budget proposal to table GST Amendment Bill without consulting the States is not welcome. He explained that there are some differences regarding Goods and Sales Tax, such as number of band to be fixed for tax rates and GST Council structure.He appealed to the Central Government to sort out these issues before embarking upon the amendment bill. He also felt that 12.4% increase in plan size is not sufficient to meet inflationary requirements. The Chief Minister however welcomed allocation of Rs.710 crore for Bangalore Metro and sops announced for senior citizens and unorganized sector. He also welcomed increased allocation under JNNURM.The leader of the Opposition Siddaramaiah has welcomed the Central Budget and said decrease in interest rate on loans to farmers at 3 percent will help Agriculture sector.

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