New Delhi: The Industrial sector which was keeping fingers crossed and expecting more from this General Budget, which was tabled in the Lok Sabha by the Finance Minister Pranab Mukherjee on Friday, had to face some harsh realities.

Announcement of hike in excise duty has marred the hope of the manufacturing sector which was expecting some measures to curb the falling figures of the sector.

A disappointed India Inc has said that the budget proposals announced by the Finance Minister are no way going to improve the condition of the economy. It will have a cascading impact on the inflation and consumer demands. The announcement of a 2 percent hike in the excise duty especially when the economy is witnessing a slowdown is being viewed as a step which is bound to trouble the economy. The Government also absorbed duty reduction in petroleum sector with annual revenue loss of Rs 49,000 crore, adding that the Government had to incur higher expenditure on petroleum and fertiliser subsidy to insulate the people from the rising prices.

With an increase in the excise duty on all products in this Budget, car makers like Maruti Suzuki, Mahindra & Mahindra and Honda Siel Cars India have announced to increase the prices of their products. 

The government has estimated to collect Rs 95,000 crore from service tax in the current fiscal and has pegged the next year's target at Rs 1.24 lakh crore. Lower tax revenues and poor disinvestment receipts have pushed up the government's fiscal deficit for 2011-12 to 5.9 percent of the GDP, as against the target of 4.6 percent.

(JPN/ Bureau)