Govt ready to ride out political storm; FinMin against excise cut on fuel

The government does not want to take any populist measures - and derail the fiscal deficit target - in an election year

Finance ministry officials have informed the political leadership that any cut in excise duty, despite petrol and diesel prices touching record highs, was ill-advised if the government wanted to stick to fiscal deficit targets. The leadership has also expressed willingness to ride out any political storm, said sources.

The fiscal deficit target for 2018-19 or FY19 is 3.3 per cent of gross domestic product (GDP). The petrol price in Delhi on Wednesday was Rs 79.4 per litre; for a litre of diesel, one would have to shell out Rs 71. 43.

The government, however, does not want to take any