PC gets Budget hangover on oil pool

BUDGET 2006: FM discusses about taxes and the GDP growth.

People who read this also read:

Budget '07-'08: PC's post-Budget interview

Chidambaram explains the finer nuances of the Union Budget 2007-08.

Featured Blog

Yogesh Kumar

The 'Hall of Shame'

Featured Slideshows

Related Headlines

powered by

• Budget '07-'08: PC's post-Budget interview

Keywords: Interview, Post-budget

Chidambaram: Not I, it's always being so.

Raghav: No. It was never until there was a point when the oil pool fund used to recognize that deficit and it used to be stated above the line in the Budget. You are stating anything above the line now in the oil companies losses?

Chidambaram: We have made it publicly, transparently clear that the pass through is not complete, the burden of oil prices will be shared between the oil companies, the government and the consumer. I have said it, the Prime Minister has said it, the Minister of Petroleum has said it. The oil companies today are absorbing some of those losses and to that extent they have absorbed the losses, I have issued oil bonds.

Raghav: Which if you had taken them into account, the thought is that your deficit would have been closer to 5 per cent and not 4.1 per cent?

Chidambaram: But that is not something which happened only this year. Right through fertilizers, food and oil subsidies, whenever they are met through bonds they are not taken into the deficit. It is not something, which we have done this year.

Raghav: I am talking about an accurate depiction of the deficit?

Chidambaram: Therefore you take the off-Budget deficits also into account, it is quite okay with me. But you have to then compare it with off-Budget deficits in all past years, even then there is an improvement in the fiscal situation.

Raghav: Improvement on fiscal situation the fact is GDP is growing so much and your tax administration has been good, so that’s granted. Oil sector, nothing at all in your speech; it is almost as if you have shrugged off the problem?

Chidambaram: I am surprised you say that, there is a whole paragraph on the NELP, there is a paragraph on three investment zone that we hope to establish this year for petroleum, chemicals and petrochemicals.

Raghav: But how to fix the problem of oil prices and oil subsidy?