A “financial fraud” played by the government of the UPA (2004-2014) using the instrument of oil bonds is responsible for the suffering of Indian consumers today, according to government sources. They also accused the “non-politicians” in today’s administration of dereliction of duty by failing to arrest the politicians in this matter. Congress, however, dismissed the argument, calling it “lame”.
Sources pointed out that oil company undercollections, thanks to oil subsidies, were converted into oil bonds by the UPA regime under Prime Minister Dr Manmohan Singh.
“These bonds were issued to finance the subsidy granted on certain petroleum products to cover the difference between the purchase price by the oil companies and the reduced price they were forced to sell by the UPA government”, government sources said.
“Under normal circumstances, the grant is treated as an expenditure of revenue and therefore is part of the budget. By issuing these bonds, the grant has been treated as an off-budget item, and the revenue gap has therefore been reduced,” said they declared. .
Rising gasoline and diesel prices are a legacy of UPA mismanagement.
We are paying for the oil bonds that will be redeemed from fiscal year 2021 until the 26th, which were issued by the UPA to oil companies so as not to increase retail prices at that time!
Bad economy, bad policy. pic.twitter.com/I4hZR0i1K8
– Amit Malviya (@amitmalviya) June 20, 2021
Now, as of this year, such bonds worth Rs 1,30,701 crore have been redeemed. The interest payable on them for this year is Rs 10,000 crore, they said.
“Indeed, the managers of the economy – the government concerned, bureaucrats, economic advisers, Reserve Bank of India governors, etc. – were all involved…” sources said.
“They also allowed the government of the day to transfer responsibility to the government that would follow. Therefore, non-politicians have seriously failed in their duties and should be held to a higher level of responsibility than politicians., ” they said.
The sums involved are not minimal and will harm the programs that the current government would like to carry out, according to them.
In the last seven years of Prime Minister Narendra Modi’s government, up to Rs 70,000 crore has been spent on interest payment alone, a source pointed out, contrasting it with the budget allocation of Rs 35,000 crore. this year for the pandemic.
However, at least one congressional leader called the argument “lame.”
Indians consumed 30 million tonnes of gasoline and 73 million tonnes of diesel, or 14,228 million liters in 2019-2020. A bond payment of 20,000 crore amounts to * drum roll * 1.40 / liter.
– Amitabh Dubey (@dubeyamitabh) June 20, 2021
Amitabh Dubey, president of the Delhi Professionals’ Congress, pointed out that Prime Minister Modi’s government had, in the past six weeks alone, increased fuel prices by Rs 7 per liter.