Madhya Pradesh minister Brajendra Singh Rathore on Sunday said non-disbursal of funds by the Centre was responsible for the hike in the Value Added Tax (VAT) on petrol and diesel in the state.
The Minister for Commercial Tax made the statement while talking to reporters here.
"We have to run the welfare schemes for the poor, but the Centre is yet to release about Rs 13,000 crore to the state under various heads. So we were compelled to hike the VAT on petroleum products," Rathore said in response to a query.
The state government had increased by five per cent the VAT on petrol and diesel in September this year.
At that time, the government officials had assured that the price rise was a temporary measure meant to recover the losses incurred due to excessive rains.
"The Centre is yet to release Rs 1,500 crore of Goods and Service Tax (GST) dues of August and September. Overall, it has to release Rs 3,008 crore of GST dues to the state. Besides, the Centre has not yet released funds for several other schemes under various departments," Rathore alleged.
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