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Finance Minister blames UPA govt for oil bonds and fuel pricing

Finance Minister blames UPA govt for oil bonds and fuel pricing
Finance Minister Nirmala Sitharaman said the Modi government was paying for the Rs 2.5 lakh crore liability of oil bonds.

Economy

Finance Minister blames UPA govt for oil bonds and fuel pricing

Lashing out at the previous government led by UPA, Finance Minister Nirmala Sitharaman said the Modi government was paying for the Rs 2.5 lakh crore liability of oil bonds. She highlighted that if there hadn’t been the burden to service the oil bonds, the government would have been in the position to reduce excise duty on fuel.




Sitharaman said the previous government has made the job difficult by issuing oil bonds. “When the NDA came to power in 2014, it should have released a white paper on the liabilities inherited by it.” The Finance Minister also clarified that she was not suggesting anything on changing the levies.

In a strong statement, the Congress accused the Centre of increasing taxes on auto fuel and pocketing Rs 4.5 lakh crore during the last fiscal year. But Sitharaman said that in 2013, oil companies were made to bear the burden of oil bonds of around Rs 1.4 lakh crore, with taxpayers having to repay the debt for several years. “Modi 2.0 is paying for the price reduction of 2013. The central government reduced prices, put the burden on oil companies and went away.”


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But Congress spokesperson Randeep Singh Surjewala accused the government of falsehoods. “Don’t lie. “BJP raised central taxes on petrol & diesel by Rs 23.87 and Rs 28.37 per litre in 7 years. Modi govt collected additional Rs 17.29 lakh cr,” Surjewala tweeted. Oil Bonds of 1.3 lakh cr are not even due for payments so far. Till April 2021, payment made on Oil Bonds is Rs 3,500 cr only, yet you falsely hold UPA responsible!” The UPA government under Prime Minister Manmohan Singh had issued oil bonds, or instruments in lieu of cash subsidy to oil marketing companies, that are up for redemption now.


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