The direct consequence of this budget will be a sharp fall in the production growth rates in the important spheres and a notable increase in unemployment and inflation, Basu said. "The problem is that this budget has continued to follow a line of liberalisation which, it has been proved, hurts the interest of the common masses but has extended it alarmingly by proposing to open up socially significant sectors like the insurance to private entrepreneurs," he said. He added that unemployment and public distribution system are two spheres which have been totally neglected.

Dipankar Dutta Gupta, President, Bengal National Chamber of Commerce & Industry, welcomed the Budget for its positive featureslike higher allocation on agriculture, rural development, infrastructure and higher excise benefit for SSI Units, proposed end of inspector raj, raising of exemption limit of personal income tax, tax holiday for housing development and opening of insurance to Indian private sector.

S S Prasad, president, Bengal Chamber of Commerce & Industry, said the finance minister had a difficult task in presenting the Budget. However, he has attempted to face the challenges in a bold manner. A particularly noteworthy feature of the Budgett is the thrust on agriculture and rural development, Prasad said and added an objectionable feature of the Budget is the disallowance restrospectively of any extortion money paid by a company. This needs to be reconsidered.

Sanjay Budhia, MD, Patton Ltd & member CII sub-committee (ER) for SSIs, said the small sector has received the due recognition. On the financial front the bank managers have been given more powers in granting of loans. The capital limit on SSIs hasbeen enhanced to Rs 4 crore from Rs 2 crore.

P K Shah, chairman, Engineering Export Promotion Council, said that no measure has been announced to stimulate export growth. He said that VAT for central and state taxes for exporters should have been introduced to compensate them for unreimbursed taxes, which goes in export production.