Petrol and diesel today became costlier by Re 1 in Uttarakhand after the state government withdrew the subsidy in view of the financial crunch.
“We withdrew the Re 1 subsidy, which was being given on both petrol and diesel,” said Secretary Finance L M Pant. With the withdrawal of the subsidy, the government would save Rs 70-80 crore annually, Pant said.
The move follows the acute financial crunch being faced by the state government in the wake of the 6th Pay Commission, which has already put a burden of Rs 2,500-3,000 crore on the state exchequer.
With the non-plan size ballooning, the government is now trying to generate more revenue through various taxes.
In yet another decision, the government has decided to impose a tax of Rs 50 in commercial category and Rs 25 on non-commercial category on the DTH services in the state. For this purpose, the government is seeking details of the customer base of the leading players in the DTH sector.