New finance minister to inherit Rs 1 lakh cr of unpaid bills

NEW DELHI: Even before the new finance minister gets down to preparing the next budget, he has to grapple with unpaid subsidies of at least Rs 1 lakh crore left behind by the UPA government.

While the food subsidy bill accounts for almost half the amount with unpaid subsidies adding up to over Rs 50,000 crore. Then, there are dues of Rs 38,000 crore to fertilizer companies and another Rs 24,000 crore to public sector oil marketing companies, which sold cooking gas and kerosene below the international price. There are also additional taxes that the government had mopped up from companies in its bid to meet its ambitious tax targets, and show healthier finances, which now need to be refunded, with interest.

Tax department officials, however, said that companies were not coaxed into paying higher taxes and refunds were not stopped.