Congress flays Union government's economic policies

STAFF REPORTER

GUWAHATI: Rajya Sabha MP and INC (Indian National Congress) spokesperson Shaktisinh Gohil has alleged that the 'misdirected policies' of the Modi government are solely responsible for the economic recession and decreasing family incomes. He said this in the presence of APCC president and MP Ripun Bora while addressing the media at Rajiv Bhawan here on Sunday.

Gohil further alleged, "The anti-people policies have led to the soaring inflation and now there is the highest-ever number of jobless youth in the country. The skyrocketing prices of petrol, diesel, LPG and necessary items have dealt a double blow to the people of India, who were already facing the shrinking family incomes, decreasing job opportunities and a declining economy.

"The 140 crore people of India are suffering the Modi made disaster of inflation, unemployment, economic recession and Corona pandemic. Everyday hike in fuel prices had further compounded the problems by making ends meet a challenge for every household. "Thus, the increase in the prices of diesel fertilizers-seeds-pesticides-electricity-agriculture equipments effected by the Modi Government has increased the cost of cultivation for the farmer by about ? 20,000 per hectare."

He added, " As per 'Kotak Institutional Securities Research', in comparison to March 2021 the prices of common household items have increased up to 42% in June 2021 (In just three months).

"In the 73 years history of this country, for the first time 5 per cent GST was imposed on fertilisers 18 per cent tax on pesticides, 12 per cent tax on tractors and farming equipment. Meteoric Rise in Petrol and Diesel Rates Petrol rates have crossed the 100-rupee mark in all 4 metro cities and in more than 200 cities of our country for the first time in history." The Congress leader added, "Between 1st January 2021 and 10th July 2021, petrol and diesel prices have been increased 71 times. The Modi government has earned more than Rs 25 Lakh crore through Excise duty in the last 7 years of its rule.

"In the last 7 years, the Excise duty on Petrol has been increased by 248% and by 820% on Diesel. The per litre increase in excise on Petrol in the last 7 years is Rs 23.50 and on diesel is Rs 28.37. The total excise collection in 2014-15 was Rs 99 Thousand Crore which has risen to Rs 4 Lakh 53 Thousand Crore in 2020-21.

"The GoI (government of India) collects Rs 32.9 per ltr from sale of petrol out of which Rs 20.5 per ltr is in the form of Cess. Cess proceeds are not shared with State Governments. So, 62% of what GoI collects from sale of petrol, the State Governments will not get anything. On diesel Central Government collects Rs 31.8 per ltr of which Cess is Rs 22 per Ltr ie 69% of collection by GoI from sale of diesel will not have any share of State Governments.

"There is often an argument about the states reducing their VAT to lower the prices in their State. All States combined have collected Rs 1.35 Lakh Crore as VAT in the first 9 months of 2020-21; and this figure is expected to reach Rs 1.80 Lakh Crore for the entire 2020-21. Compared with the amount center collects as Excise, this is just 41% of Rs. 4.53 Lakh Crore.

"High excise duty on petrol and diesel is highly regressive as it affects the middle class and lower income groups both directly and indirectly "High prices of diesel are anti-farmers too as they are the consumers of diesel directly and an increase affects them directly

"Average Crude Oil rates per bbl had reached close to $ 112 in 2011-12 and when Congress left office, the average crude oil rates were $105.52 but the petrol prices per litre were Rs 71.51."

The Congress leader further stated, "There is a fall in 'Domestic Oil Production' under Modi Rule. The Indigenous Crude Oil production was 23.4% (of Imports + Indigenous Crude oil) under UPA-I and UPA-II that has fallen to 15.8% between 2014 and 2020. This share has been on a freefall under the Modi government. In fact, India recorded the lowest crude oil production in at least 18 years in 2020 "While on one hand, the Modi government has the audacity to blame previous governments for its incompetence, the truth is that it is trying to hide behind the bush. The capital outlay for Oil and Natural gas Corporation (ONGC), which accounts for 63% of the total domestic crude oil production is down 8% at Rs 29,800 crore.

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