Finance Minister Nirmala Sitharaman on Sunday said the entire burden of the two excise duty cuts — in November 2021 and in May 2022 — is being borne by the Centre.
She said the excise duty reduction of Rs8/litre on petrol and Rs6/litre on diesel (which is effective from today) has entirely been made in Road and Infrastructure Cess (RIC). She added that even in November 2021, the reduction of Rs5/litre in petrol and Rs10/litre in diesel was entirely made in RIC.
She said the basic excise duty that is sharable with states has not been touched.
4/ Basic ED which is sharable with states has not been touched.
Therefore, the entire burden of these two duty cuts (made in Nov, 21 and yesterday) is borne by the Centre.— Nirmala Sitharaman (@nsitharaman) May 22, 2022
The Finance Minister explained that Basic Excise Duty (BED), Special Additional Excise duty (SAED),Road & Infrastructure Cess (RIC) and Agriculture & Infrastructure Development Cess (AIDC) together constitute Excise Duty on petrol and diesel. "Basic ED is sharable with states. SAED,RIC & AIDC are non-sharable," she said on Twitter, among a series of tweets.
2/Basic Excise Duty (BED), Special Additional Excise duty (SAED),Road & Infrastructure Cess (RIC) and Agriculture & Infrastructure Development Cess (AIDC) together constitute Excise Duty on petrol and diesel.
Basic ED is sharable with states.SAED,RIC & AIDC are non-sharable.— Nirmala Sitharaman (@nsitharaman) May 22, 2022
She said Sunday's duty reduction has an implication of Rs1,00,000 crore a year for the Central government, while duty cut in November 2021 has an implication of Rs1,20,000 crore a year for the government. "Total revenue implication to Centre, on these two duty cuts is thus ₹ 2,20,000 cr a year," she said.
5/ The duty reduction made yesterday has an implication of ₹ 1,00,000 cr a year for Centre. The duty reduction made in November’21 has an implication of Rs 1,20,000 cr a year for Centre. Total revenue implication to Centre, on these two duty cuts is thus ₹ 2,20,000 cr a year.
— Nirmala Sitharaman (@nsitharaman) May 22, 2022
The Finance Minister said the Reserve Bank of India's data showed that total developmental expenditure incurred by the Modi government during 2014-22 was Rs90.9 lakh crore, while only Rs49.2 lakh crore was spent on developmental expenditure from 2004-2014.
She said the expenditure incurred by the government under Prime Minister Narendra Modi includes Rs24.85 lakh crore spent on food, fuel and fertiliser subsidies, so far and Rs26.3 lakh crore spent on capital creation. "Over the 10 years of UPA, only 13.9 lakh crore was spent on subsidies," she said.
7/The expenditure incurred by our Govt under @PMOIndia @narendramodi includes ₹ 24.85 lakh crore spent so far on food, fuel and fertiliser subsidies and ₹ 26.3 lakh crore on capital creation.
Over the 10 years of UPA, only ₹ 13.9 lakh crore was spent on subsidies.— Nirmala Sitharaman (@nsitharaman) May 22, 2022
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First Published: May 22, 2022 4:18 PM IST
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