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Resource centre on India's rural distress
 
 

Excise duty relief on petrol, diesel to cost ₹45,000 cr to exchequer: Nomura

-PTI/ Livemint.com

Nomura expects India's fiscal deficit to come at 6.5 per cent as against the earlier expectation of 6.2 per cent and underlined that it will still be lower than the budgeted 6.8 per cent target

The excise duty cuts on diesel and petrol will cost 45,000 crore and lead to a 0.3 percentage point widening on the Centre's fiscal deficit, a foreign brokerage said on Thursday.

Going by the overall consumption, the costs of the surprise move – which came after months of concerns over high payouts at filling stations – for the entire fiscal will come at 1 lakh crore or 0.45 per cent of GDP, economists at Japanese brokerage Nomura said in a report.

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