New Delhi: Union Finance Minister Pranab Mukherjee who has slashed subsidy for the under privileged people of the country, but has left the grant provided to the corporate sector untouched. Now the industries are getting a subsidy of Rs 5.9 lakh crore which is more than the corporate tax collected by the government form this sector.

It is interesting to note that the government has increased the subsidy to the corporate sector by 20 percent especially when the government is facing difficulties in increasing its revenue collection. In the current financial year which ends on April 1st, the corporate sector got a subsidy of Rs 5,39,552 crore which is double the grant given to the people by the government.

Experts had speculated that owing to the socio-political reasons, it is difficult to cut subsidy on food, fertilizer and petroleum but the subsidy given to the corporate sector could be slashed, which didn’t happen. Now a total subsidy of Rs 2,08,503 crore is being offered by the government to the people on these products.

Now the industries are being given an exemption of Rs 2,76,093 crore on custom duty. In the current financial year, mere Rs 1,46,000 crore has been collected as custom duty. Similarly, Rs 1,53,000 has been collected as excise duty whereas an excise duty exemption of Rs 2,12,177 crore has been given to the companies. This year, the sector has been given an exemption of 20 percent each on excise duty and custom duty.