Will oil sector growth lead to more capex for underfunded ministry

For a sector that accounts for 15 per cent of India’s gross domestic product (GDP) and 26 per cent of the revenue receipts of the Central and state governments, India’s petroleum ministry is woefully underfunded. 

The petroleum sector contributed Rs 4.32 trillion to the Central exchequer by way of taxes, royalties, and dividends, among others, and Rs 3.19 trillion to the states in 2023-24, according to an oil ministry document. That is adequate to almost cover the combined federal government spending on pension, defence, and health. Fuel exports contributed 11 per cent to India’s total exports by value last financial