Click to play videoNew Delhi: Railway Minister Mamata Banerjee is among the MPs who are upset with Pranab Mukherjee's Union Budget. The reason for Mamata being upset is that the Railways will no longer be exempted from service tax for transportation of goods, which means her please all Budget may not go according to plan.
So it seems that the Railway Budget and the Union Budget could have now widened the differences between Mamata and Pranab - both leaders from West Bengal.
On February 24 the Railway Minister distributed largesse by not increasing passenger fare and freight rates, but the Finance Minister on Friday completely upset her math.
Mukherjee announced that there would be no exemption from service tax for transportation through Railways, which will coast the Railways Rs 6,000 crore and lead to an increase in freight rates.
The move implies a possibility of a increase in freight rates between six and seven per cent in case the Railways decides to pass it on to the consumer.
"I am surprised that not in the Budget speech or in the Finance Bill, but in the explanation to the Finance Bill that in a fine print there is this big impact of at least Rs 6000 crore which somebody will have to pay. The Railways will have to pass on to the consumers. It will have a direct inflationary impact," said FICCI Secretary-general and Railways Expert Committee Chairman Amit Mitra.
An angry Mamata left for Kolkata immediately after the Budget speech. Hitting back at the Congress, Trinamool has now decided to join hands with the Opposition against the increase in petroleum prices.
"We are not happy with the increase in petrol price The party is not happy. The decision should be taken back," said TMC MP Sudip Bandopadhyay.
With elections in West Bengal next year, the Congress seems to be engaged in competitive politicking with its own important ally. The Congress' attempts to dampen her enthusiasm may complicate things for the ruling alliance with the Opposition now joining hands.
(With inputs from Sougato Mukopadhyay)
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