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Tax revenue boost or expenditure cuts can help meet fiscal deficit target

The impact of Saturday's excise duty cuts will be Rs 1 trillion for a year, Finance Minister Nirmala Sitharaman had said

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Apart from the excise duty cuts, Sitharaman also said the Centre will bear an additional Rs 1.1 trillion in fertiliser subsidy burden as commodity prices have spiked due to Russia’s invasion of Ukraine.

Arup Roychoudhury New Delhi

4 min read Last Updated : May 23 2022 | 6:03 AM IST

With not even the first two months of FY23 over, it is becoming increasingly clear that unless there is a massive boost in tax revenue or major cuts in expenditure, the fiscal deficit target of 6.4 per cent of the GDP is unlikely to be met.

The impact of Saturday’s excise duty cuts will be Rs 1 trillion for a year, Finance Minister Nirmala Sitharaman had said. Senior officials told Business Standard that with one and a half months already gone in the current fiscal year, the impact will be about Rs 85,000 crore.

Sitharaman tweeted on Monday that the Centre will bear

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