NewKerala.com

Key Points

Congress president Kharge has accused the Modi government of depriving states of their rightful share from fuel cess collections. He claims the Centre collected Rs 38.89 lakh crore since 2014 while increasing excise duties despite falling global crude prices. The Congress leader alleges BJP-ruled states are also being denied funds from the Rs 1.47 lakh crore fuel cess revenue. Kharge argues these funds could have supported state development instead of remaining unutilized.

Key Points: Kharge Accuses Modi Govt of Squeezing States' Petrol Diesel Cess Share

  • Kharge claims Rs 38.89 lakh crore collected since 2014 not shared with states
  • Alleges Rs 2 excise hike despite 47-month crude price low
  • States denied share of Rs 1.47 lakh crore fuel cess revenue
  • Rs 5.7 lakh crore unspent cess funds could aid states
2 min read

Modi government 'squeezed' rightful share of states in cess on petrol, diesel: Mallikarjun Kharge

Congress chief Kharge alleges Modi govt withheld Rs 38.89 lakh crore from states via fuel cess despite falling crude prices.

"Modi Govt's 'Cooperative Federalism' = CESSation of Federalism! - Mallikarjun Kharge"

New Delhi, April 22

Congress President Mallikarjun Kharge on Tuesday hit out at the Modi government for imposing a cess on petrol and diesel despite falling global crude oil prices.

He alleged that even though it has collected 38.89 lakh crore since 2014, it has "squeezed" the rightful share of states by not sharing the cess component with them.

In a post on X, the Congress President said, "Modi Govt's 'Cooperative Federalism' = CESSation of Federalism !"

He alleged that despite international crude oil prices falling to a 47-month low, the Modi government increased the central excise duty on petrol and diesel by Rs 2 each.

This year, the Modi government shall earn Rs 1.47 lakh crore from the total cess on petrol and diesel and a whopping Rs 28,000 crore from this Rs 2 central excise duty alone, Kharge claimed.

https://x.com/kharge/status/1914604479682626039?t=pp6PvZtzflwlXp-F9Qep2g&s=08

"But STATES, including BJP-ruled ones, would NOT get a single paisa from this Cess, even though the states have been constantly demanding a higher share of the Divisible Pool from the Union Govt," Kharge added in his post.

"Since 2014 to December 2024, the Modi government has collected Rs 38.89 lakh crore by taxing petrol, diesel and petroleum products." Instead of following the model of 'Team India' propagated by PM Modi, the Union government has passed on the burden of Rs 1 lakh crore in revenue forgone in giving tax rebates on personal income tax up to the Rs 12 lakh slab announced in the Budget 2025-26," the Congress chief said.

He further claimed that Rs 5.7 lakh crore, collected through various cesses and surcharges since 2019-20, will remain unspent by the Modi government (till March 2026).

"This could have easily passed on to the states, but the Modi government is busy squeezing the rightful share of the states," Kharge alleged in his post.

- ANI

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Reader Comments

R
Rahul K.
This is really concerning! States are already struggling with finances and now this? The central government should reconsider this policy. Federalism means working together, not taking away resources.
P
Priya M.
I don't understand why fuel prices aren't coming down when crude oil prices are falling. This explains a lot! 😠 The common people are suffering while the government keeps collecting more taxes.
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Amit S.
While I generally support the current government, this seems unfair to states. Even BJP-ruled states are complaining. There needs to be more transparency in how these funds are being used.
S
Sunita R.
The numbers are staggering! ₹38.89 lakh crore since 2014? Where is all this money going? We deserve better roads, hospitals and schools if we're paying so much in taxes.
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Vikram J.
Interesting point about the unspent ₹5.7 lakh crore. If the money isn't being used, why not share it with states who actually need it for development projects?
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Neha P.
The pun in "CESSation of Federalism" is clever but the issue is serious. Federal structure is important for our democracy. Hope this gets more attention in mainstream media.

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