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With reference to the oil bonds, consider the following statements:
1. Before fuel prices were deregulated, petrol and diesel as well as cooking gas and kerosene were sold at subsidised rates.
2. Since 1991 the Union government is issuing oil bonds to oil marketing companies from the Budget to contain the fiscal deficit.
Which of the statements given above is/are correct?
  • a)
    1 only
  • b)
    2 only
  • c)
    Both 1 and 2
  • d)
    Neither 1 nor 2
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
With reference to the oil bonds, consider the following statements:1. ...
The Centre has argued that it cannot reduce taxes on petrol and diesel as it has to bear the burden of payments in lieu of oil bonds issued by the previous UPA government to subsidise fuel prices.
  • Before fuel prices were deregulated, petrol and diesel as well as cooking gas and kerosene were sold at subsidised rates during UPA rule.
  • Instead of paying direct subsidy to oil marketing companies from the Budget, the then government issued oil bonds totalling Rs 1.34 lakh crore to the state-fuel retailers in a bid to contain the fiscal deficit.
  • Citing the need to repay interest and principal components on these bonds, the Centre has now argued that it needs higher excise duty to help its finances.
  • The NDA government too has used a similar strategy to inject capital into state-owned banks and other institutions by issuing recapitalisation bonds worth Rs 3.1 lakh crore, which will come up for redemption between 2028 and 2035.
Hence only statement 1 is correct.
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Most Upvoted Answer
With reference to the oil bonds, consider the following statements:1. ...
The Centre has argued that it cannot reduce taxes on petrol and diesel as it has to bear the burden of payments in lieu of oil bonds issued by the previous UPA government to subsidise fuel prices.
  • Before fuel prices were deregulated, petrol and diesel as well as cooking gas and kerosene were sold at subsidised rates during UPA rule.
  • Instead of paying direct subsidy to oil marketing companies from the Budget, the then government issued oil bonds totalling Rs 1.34 lakh crore to the state-fuel retailers in a bid to contain the fiscal deficit.
  • Citing the need to repay interest and principal components on these bonds, the Centre has now argued that it needs higher excise duty to help its finances.
  • The NDA government too has used a similar strategy to inject capital into state-owned banks and other institutions by issuing recapitalisation bonds worth Rs 3.1 lakh crore, which will come up for redemption between 2028 and 2035.
Hence only statement 1 is correct.
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With reference to the oil bonds, consider the following statements:1. Before fuel prices were deregulated, petrol and diesel as well as cooking gas and kerosene were sold at subsidised rates.2. Since 1991 the Union government is issuing oil bonds to oil marketing companies from the Budget to contain the fiscal deficit.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer?
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With reference to the oil bonds, consider the following statements:1. Before fuel prices were deregulated, petrol and diesel as well as cooking gas and kerosene were sold at subsidised rates.2. Since 1991 the Union government is issuing oil bonds to oil marketing companies from the Budget to contain the fiscal deficit.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer? for Current Affairs 2024 is part of Current Affairs preparation. The Question and answers have been prepared according to the Current Affairs exam syllabus. Information about With reference to the oil bonds, consider the following statements:1. Before fuel prices were deregulated, petrol and diesel as well as cooking gas and kerosene were sold at subsidised rates.2. Since 1991 the Union government is issuing oil bonds to oil marketing companies from the Budget to contain the fiscal deficit.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Current Affairs 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for With reference to the oil bonds, consider the following statements:1. Before fuel prices were deregulated, petrol and diesel as well as cooking gas and kerosene were sold at subsidised rates.2. Since 1991 the Union government is issuing oil bonds to oil marketing companies from the Budget to contain the fiscal deficit.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer?.
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