Depreciating rupee not likely to cause fiscal slippage, say experts

Petroleum, fertiliser imports to become expensive, subsidy bill set to rise

Indian rupee
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Photo: Bloomberg

Shiva RajoraAsit Ranjan Mishra
Cheaper crude oil sourced from Russia and conservative estimate of nominal GDP may secure the Centre’s finances from any significant deterioration in FY23 as a result of rupee hitting a fresh low at 80.86 against dollar on Thursday, experts said.

In principle, a depreciating rupee will make India’s petroleum and fertiliser imports expensive. Since the government provides cooking gas and fertilisers at a subsidised rate to the end consumer, it should bloat the government’s subsidy bill.

N R Bhanumurthy, Vice-Chancellor of Dr B R Ambedkar School of Economics University, however, said despite depreciation in rupee, the government is not going

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First Published: Sep 22 2022 | 8:36 PM IST

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