Govt not looking at cutting fuel excise for now

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The government is not looking at cutting fuel excise on fiscal concerns, sources informed CNBC-TV18. While Rs 10 fuel excise cut will impact fiscal deficit by 0.58 percent, it will cool inflation only by 0.2 percent, they said.

The government is not looking at cutting fuel excise on fiscal concerns, sources informed CNBC-TV18. While Rs 10 fuel excise cut will impact fiscal deficit by 0.58 percent, it will cool inflation only by 0.2 percent, they said.
The government has told Parliament, sources added, that the excise duty rates on petrol and diesel have been calibrated to generate resources for infrastructure and other developmental items of expenditure keeping in view the prevailing fiscal situation.
For now, sources said, the government is managing expenditure within Budget and higher spend on subsidies, vaccine programme can be seen towards February.
Sources further that they expect additional expenditure for FY22 at the time of revised estimates of budget.
"Sufficient balance is there in budget for food, fertiliser subsidies and vaccination for now. Further, FY22 additional outgo on vaccination can be seen around Rs 5,000 crore- Rs 6,000 crore. FY22 vaccine budget is likely to settle around Rs 40,000 crore to Rs 41,000 crore," they mentioned.