Why is the Finance Minister getting angry about ‘Oil Bond’, which is targeting the UPA government? Know the whole matter
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New Delhi : Finance Minister Nirmala Sitharaman is furious about the oil bonds and she continues to attack the previous United Progressive Alliance (UPA) government regarding this. Even on Friday, when she was replying to the discussion on the Union Budget 2023 in the Rajya Sabha, she pulled up the UPA government regarding oil bonds and accused the Congress. In the Rajya Sabha, he termed the oil bonds issued during the tenure of the Congress-led UPA government as ‘tricky’ and said that the present government is paying the burden put by the previous UPA government.
We are atonement for UPA’s mistake
Finance Minister Nirmala Sitharaman hit out at the Congress, saying oil bonds are clever, because if you wanted to give subsidies to reduce the burden, the UPA government could have cut excise duty, as we did. But, the previous UPA government did not do this. They transferred to oil marketing companies, which constitute revenue expenditure but do not create assets. He said that the previous UPA government shifted the burden in the name of oil bonds, which we have now repaid. It is their fault and we are making atonement.
PM Modi cut excise duty twice
He said that when the import price of oil increased, Prime Minister Narendra Modi reduced the excise duty on petroleum products twice (November 2021 and June 2022) to reduce the cost burden on the public. He said that when we cut the duty on fuel, there were many states which did not implement it. I don’t want to take his name. He said that the Congress-ruled Himachal Pradesh government should be asked why it increased VAT on diesel by Rs 3 after winning the assembly elections.
What are oil bonds
Oil bond is a type of financial instrument, under which the government gives cash subsidy to oil marketing companies. This is a promissory note, showing which oil companies can raise money from the market. Generally this pledge is used to control the prices of petrol and diesel. Generally governments use oil bonds to reduce the price of oil. Basically governments use oil bonds to avoid giving subsidies directly in the budget. By using them, the governments get help in reducing the prices of petrol and diesel and it also avoids increasing the burden on the government exchequer on an immediate basis. If you look in the true sense, then in reality the burden of expenditure does not reduce, rather it is postponed for some time.
what is the real issue
On the matter of reducing the rising prices of petrol and diesel in the country, Finance Minister Nirmala Sitharaman always accuses the previous UPA government that due to this the government owes crores of rupees, due to which her government is justified in reducing the price of oil. Can’t take steps. In fact, in the year 2012, the then UPA government had issued oil bonds worth about Rs 1.44 lakh crore. Of these, the maturity date of two bonds worth a total of Rs 3500 crore came in 2015 and that year the National Democratic Alliance (NDA) government led by Prime Minister Narendra Modi had to pay this amount.
Till 2025-26, the government has no time to pay its dues
After this, the Modi government has to pay Rs 10,000 crore in the financial year 2021-22, Rs 31,150 crore in 2023-24, Rs 52,860 crore in 2024-25 and Rs 36,913 crore in 2025-26. Not only this, the government has been paying around Rs 10,000 crore every year for the last seven years.
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