India increases fuel prices after imposing taxes

New Delhi: Indian opposition lawmakers staged a noisy walkout from parliament during the federal budget presentation, slamming the finance minister for an increase in fuel duties they said will fan rising prices that are hurting the poor.

It was the first time the opposition had taken such a step during one of the biggest events of the parliamentary year, the CNN-IBN television channel said.

The increase in fuel prices "will have a massive cascading effect on all prices," said Yashwant Sinha, a BJP leader and former finance minister.

The fuel prices were increased after Finance Minister Pranab Mukherjee increased import duty and excise tax on crude oil and refined products in his budget.

Petrol prices will be raised by 2.71 rupees a litre and diesel by 2.55 rupees a litre starting midnight, Oil Secretary S. Sundareshan said.

The budget, which is aimed at lowering the fiscal deficit, also promised higher, more inclusive growth.

The proposal to widen income-tax brackets is expected to put more cash in the hands of people, spurring domestic demand

Defence expenditure was hiked 3.98 per cent to 1.47 trillion rupees ($32 billion) in view of the prevailing security situation and terrorist threats.

Indian expatriates in the UAE hailed the budget as balanced and progressive.