Budget maths won't be hit if oil is below $70 a barrel, say analysts

Oil sank to the lowest level in a month after shedding all of its gains from the US-Iran clash

On top of the sustained economic slowdown that the Narendra Modi government has to factor in as it readies the 2020-21 Union Budget, there is also the uncertainty of further flashpoints in the West Asia and the resultant impact on crude oil prices. 

Analysts and economists, however, say that as long as crude prices stay below the $70 a barrel level, neither the Centre’s Budget maths nor inflation trends will be affected adversely. And going by the recent statements from global leaders, including US President Donald Trump, a de-escalation is being sought, which is good news for budget-makers.

“We would be okay