New Delhi: Finance Minister Arun Jaitley's much-anticipated Budget is expected to restore customs duty on the crude oil. The move will give the exchequer around Rs 14,000 crore the next financial year.
The extra money will also help the government meet its target of keeping the fiscal deficit at 3.6 per cent of the gross domestic product (GDP) in 2015-16.
Reports suggest the government could re-impose the duty at the rate at 3 per cent, as against 5 per cent which was scrapped in June 2011 amid high global oil prices.
Global crude oil prices have fallen by more than 50 per cent since June last year.
In 2013-14, India imported 3.86 million barrels a day of crude oil. If consumption in 2014-15 remains at the same level, imports will stand at 1,409 million barrels. At $53.83/barrel for the Indian crude oil basket, the country's total import bill will stand at about $76 billion. Three per cent of that means Rs 14,186 crore.
Jaitley will present the government's accounts for the current financial year in his February 28 budget. The fiscal deficit target for FY15 is 4.1% of GDP.
Adhering to a fiscal road map laid down by his predecessor, P Chidambaram, Finance minister Arun Jaitley is expected to bring down the fiscal deficit to 3.6 per cent of GDP in 2015-16.
Two days back oil retailers reduced the petrol and diesel prices as the rout in the global oil market triggered the tenth cut in fuel rates since August. Petrol prices fell for the tenth time since August, dropping Rs 2.42 to Rs 58.91 per litre in Delhi, while diesel fell by Rs 2.21 to Rs 46.01.
Since November 2013, the government has also implemented excise duty increases on petrol and diesel four times — totaling Rs. 7.75 a litre on petrol and Rs. 7.5 a litre on diesel. This is likely to fetch it an additional Rs. 21,000 crore, of which a third will go to states.
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