Cessation of Federalism: Kharge's Critique of Modi's Fuel Policy

Congress president Mallikarjun Kharge criticizes the Modi government for imposing cess on petrol and diesel amid declining global oil prices. He accuses the government of withholding Rs 38.89 lakh crore collected since 2014, depriving states of their rightful revenue share, contrary to cooperative federalism principles.

In a pointed criticism, Congress president Mallikarjun Kharge has slammed the Modi government for imposing cess on petrol and diesel, despite a slump in global oil prices. He alleges that the administration has accrued Rs 38.89 lakh crore since 2014 by withholding states' fair share of these earnings.

Kharge insists that while central excise duties on fuels have risen by Rs 2 each, the states—regardless of their ruling parties—haven't received any portion of the Rs 1.47 lakh crore earned this year from petrol and diesel cess. This situation persists despite states' demands for a greater share from the Union government.

Accusing Modi's regime of reneging on its 'Team India' vision, Kharge notes a significant misalignment with the cooperative federalism model. He further claims that Rs 5.7 lakh crore in cesses and surcharges, collected since 2019-20, will remain unallocated until March 2026, a substantial sum that could otherwise empower states financially.

(With inputs from agencies.)