BJP flays FM remarks of states getting benefits of duty rise

He was asked if the Finance Minister was trying to shift the blame of increasing prices of essential commodities on the state governments.

Prasad said it was the Central government which decides the economic policies and increases the prices of petroleum products and not the state governments.

“Their government destroys food economy of the country and then they blame states. This is not the right thing to do and this means that the central government is not left with any alternative to bring down inflation,” he added.

Earlier in the day,the Finance Minister said in Lok Sabha that states have been major beneficiaries due to increase in duties on petroleum products while the Union government gets the flak.

Of Rs 1,08,000 crore collected in terms of revenue on account of duties on petroleum products,Rs 24,000 crore goes to the states. Besides,the states impose their own duties on account of which they collect revenue to the tune of Rs 72,000 crore,Mukherjee said.

In all,the states earn Rs 96,000 crore while the centre gets the revenue of Rs 84,000 crore and still gets the “gaali (abuse) from the MPs and protagonists of the states”,he said.