The government does not intend to go easy on its fiscal deficit targets by easing taxes on fuel or by spending more during an election year. Union minister Arun Jaitley said on Tuesday that the government would stick to its fiscal deficit targets this year and not go in for panic reaction in response to crude oil prices or volatility in the foreign exchange market.
Speaking at State Bank of India’s 5th banking conclave Jaitley described the increase in international oil prices as `artificial’ and `transient’. “A large number of suppliers do not have the strength to hold on at that level of supplies.
They also need revenues based on their oil resource and therefore our whole attitude must be one where we have restraint. We have patience and we have the economic strength to deal with it,” said Jaitley.
The Union minister’s statement comes on the back of criticism that the government is profiteering through high taxes on petrol and diesel and there is growing pressure on the government to cut taxes on fuel. Read More