Fiscal deficit target to be met without budgetary cuts: FM

Justifying the hike in excise duty on petrol and diesel, Finance Minister Arun Jaitley today said for the first time fiscal deficit target will be met without budgetary cuts, as Opposition charged the government with "profiteering" from the fall in global oil prices.
"This will happen for first time, we will achieve fiscal deficit (target) without fiscal cuts," he said in Rajya Sabha, during Zero Hour on the Opposition criticism over government's decision to hike excise duty on diesel and petrol as global crude prices fell to a record low.
He said the earlier governments used to achieve fiscal deficit targets by resorting to expenditure cuts, adding that during the previous UPA rule, the cut was as high as Rs 1.20 lakh crore and "this is a harsh reality."

The government was following "proper fiscal planning" and India should take advantage of falling oil prices, he said.
Jaitley further said the drop in oil prices is passed on to consumers as petrol prices have been reduced 20 times and that of diesel 16 times.
The Leader of the House was responding to Opposition criticism over increasing excise duty on petro products at a time when the global crude prices had drastically fallen.

Responding to the criticism, Jaitley said that following reduction in fuel prices by oil companies, many a times, state governments, including those led by Congress, resorted to hiking the VAT rates.

A part of excise duty on diesel and petrol went towards building national highways and rural roads, the minister said, adding those who drove vehicles "must pay for it".
He further said the revenue from excise collection also shared with states. Besides, oil companies too make up for their past losses.
Jaitley said earlier the government used to subsidise petrol and diesel sales in the country to compensate the oil PSUs for their losses.
As the House met for the day, Congress and other opposition parties came down heavily on an item in the supplementary agenda regarding hike in excise duty.

Parties like CPI(M), JD(U), SP, BSP, BJD and DMK, as well
as NDA ally Akali Dal, also raised the issue.
To blunt the opposition charge of not passing benefits of low oil prices to the people, Jaitley said in the past, states like Delhi, Bihar, West Bengal, Himachal Pradesh and Punjab had increased VAT rates immediately after oil companies cut prices.
Jaitley added that he was not finding fault with the states as they too have to raise resources for development.
The government today increased excise duty on petrol by Rs 0.30 per litre and by Rs 1.17 a litre on diesel to make use of slump in oil prices to garner an additional Rs 2,500 crore.

As the House met for the day, opposition members waved the supplementary list regarding the excise duty hike on oil.
Leader of Opposition Ghulam Nabi Azad said his party colleague Anand Sharma wanted to express the concerns of the members, to which Jaitley said in that case, the government should also be allowed to reply as it "cannot be a one-way traffic".
He asked for a "solemn undertaking" from opposition leadership that they will be allowed to reply.
Azad said that he wanted to give at least one undertaking that SC/ST Amendment Bill, which was listed would be passed in this very session and after a proper discussion.

BSP leader Mayawati then stood up and said that in the prevailing situation in the House, it did not seem that there would be proper discussion and demanded that the Bill should be passed in this session itself.
Jaitley however again demanded an undertaking that he would be allowed to speak after Sharma raised the opposition's concerns. "I have no doubt in my mind that after Anand Sharma has spoken, they will not allow me to speak. If that happens, it will not be a good precedent," he said.
Deputy Chairman P J Kurien said the Leader of the House has a right to reply after which the debate began.

Sharma said in one year, the price of crude oil had fallen from USD 111 to USD 35 but the government was not passing the benefit to people. He asked why the government was "burdening the poor" and what happened to its promise of "achche din".
Sharma also said that the government was seeking an increase of funds for Ministry of External Affairs (MEA) and asked for what puprpose this extra money was needed. He suggested that the government needed these funds because of the Prime Minister's foreign visits.
The CPI(M) member criticised the "faulty" price
mechanism for petrol and diesal and said when the global prices are low, the domestic prices should reflect that.

SP leader Ram Gopal Yadav sought a cut in domestic prices, while Sharad Yadav (JD-U) said the people were already reeling under the burden of high prices. Finance Minister Jaitley however said that onion prices had in fact come down.
Sukhendu Sekhar Roy of the TMC wanted Vivek Gupta to speak on the issue in his place but Kurien, who was in the Chair, did not allow it.
S C Mishra (BSP) mentioned the adverse effects the excise hike would have on farmers who use diesel.
Bhupinder Singh (BJD) said the Centre should provide more assistance to states as it was raising more funds.

D Raja (CPI) also questioned the hike in excise duty as did K P Ramalingam of DMK, who wanted it to be withdrawn.
NDA ally SAD leader Sukhdev Singh Dhindsa, while seeking more funds for the states, said the hike on diesel should be avoided as it is used more by farmers. He also suggested a fund for farmers' welfare.
Later, addressing the members' concerns, Jaitley mentioned to Dhindsa that part of the Centre's collection went to the states and the share has increased to 42 per cent after Finance Commission recommendations.