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.
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.
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.
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.
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First Published: May 22, 2022 4:18 PM IST
