New Delhi, Mar 3: Government on Wednesday admitted it has onpassed the benefit of only 50 per cent of the reduced international crude oil prices to the consumers and kept the remaining half for being invested in the social sector.
With the Opposition in Rajya Sabha accusing the government of “appropriating” and “not passing” the benefit of fall in international crude oil prices to consumers, Oil Minister Dharmendra Pradhan insisted that the government was not hiding anything and asked if it was a “crime” to spend that saved money for the public welfare.
Responding to questions, he said “we have returned 50 per cent of fall in international crude oil prices to consumers while we have kept the remaining 50 per cent in government treasury and invested in other sectors like social sector.”
“Government has not consumed everything. We have not hidden anything. To have a balanced fiscal strategy, we have invested the money saved in farm sector, infrastructure sector and the health sector,” he said and asked if it was a “crime” to spend the money thus saved for the benefit of the people in a welfare state.
He also said that Finance Minister Arun Jaitley in his budget speech has also said that the fall in international crude oil prices has helped the Indian economy.
Pradhan said while the government passed on 49 per cent of the benefits of the fall in global crude prices to consumers, it has given 41 per cent of fall in diesel prices to them.
“We have saved some money. This commodity is very volatile …We have to have a balanced fiscal strategy. Our Prime Minister has made it clear…we have saved some money and reinvested in other social sectors,” he said.
The Minister, however, came under attack from the Opposition which accused his government of not passing on the benefits of falling crude prices to the consumers and instead keeping it by raising excise duties on both petrol and diesel.
