NDA govt paying for UPA's oil Bonds- FM on high fuel prices

Finance minister Nirmala Sitharaman has blamed the previous Congress led UPA government for present hike in oil prices. Talking to newsmen in New Delhi on Monday Ms SItharaman said, the government would have easily given relief from high oil prices if it did not had to bear the cost of oil bonds that the previous government had issued to companies, "If I had not incurred the UPA's oil bonds worth over Rs 1. 4 lakh crore, I would have given relief from petroleum prices," Ms Sitharaman said, explaining why she can't cut excise duty on petrol and diesel for now. The government has been paying over Rs 9000 crore interest annually, Nirmala Sitharaman said. UPA  government under former 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.

Although the government’s revenue position has improved, it cannot be linked to the issue of fuel prices, according to the finance minister.Sitharaman also said the government is preparing measures to tackle a possible third Covid-19 wave. On the economy, the finance minister said the situation is improving gradually with higher revenue generation and improvement in key indicators. Sitharaman added that the country’s banks have also recorded a profit. She said public sector banks have registered a profit of over Rs 31,000 crore, and they have raised capital over Rs 58,000 crore. She said the government expects the festival season to provide a boost to demand, which is crucial for the speedy recovery of the economy. On the retrospective tax issue, Sitharaman said finance ministry officials are holding talks with Cairn Energy Plc and Vodafone Group on how refund and settlement will be done.