Thanks to the fall in the dollar-rupee and rise in petrol and diesel prices, states will garner an additional Rs 22,700 crore in revenue over and above budget estimates, according to a State Bank of India (SBI) research note.
“A $1/barrel increase in oil prices, translates in a revenue of Rs 1,513 crore to all major (19) states,” said the note authored by SBI’s Group Chief Economic Adviser Soumya Kanti Ghosh.
Ghosh sees the largest revenue gain for Maharashtra (Rs 3,389 crore), followed by Gujarat (Rs 2,842 crore). “This windfall gain will have a positive impact on state finances, which might push down the fiscal deficit of states by 15-20 basis points, other things remaining unchanged,” he said.
The Indian currency has depreciated nearly 13 percent since the beginning of this year. On September 10, the Indian currency closed at a record Rs 72.46 after touching a fresh low in intra-day trading at Rs 72.67, down 94 paise (from previous close) against the dollar. Read More
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