Centre reworking Budget figures as oil prices soar: Report

India is likely to rank among the emerging economies worst affected by the Russia-Ukraine crisis as a surge in global prices of commodities is set to upend spending plans and derail its pandemic recovery, analysts say. Sources also said that the Centre is reworking some Budget figures as February’s Budget was based on an average oil price of $75 to $80 a barrel for the fiscal year starting from April 1, but oil prices briefly soared on Monday to nearly $140, its highest in over a decade.

If the conflict lasts, India, which imports close to 85 per cent of its oil needs, is likely to see its fiscal, trade and account deficits swelled by a surge in crude oil prices to their highest in more than a decade, which will also fuel inflation.