New Delhi, May 23: The Centre’s decision to cut excise duty on petrol and diesel will put pressure on the fiscal deficit which has been estimated at 6.4 per cent of GDP for the current financial year, experts said.
The government on Saturday cut excise duty on petrol by a record Rs 8 per litre and that on diesel by Rs 6 to give relief to consumers reeling under high fuel prices that have also pushed inflation to a multi-year high.
The tax reduction on petrol and diesel will lead to revenue loss of around Rs 1 lakh crore per year for the government.
