Finance Minister Nirmala Sitharaman Assures Fiscal Vigil Amid Oil Price Surge
New Delhi: Finance Minister Nirmala Sitharaman addressed concerns regarding rising crude oil prices on Friday, emphasizing the government’s commitment to maintaining fiscal discipline while protecting consumers from the impact of this surge.
– Resource Mobilization and Fiscal Vigilance
– Sitharaman stated that the government is enhancing efforts to mobilize additional resources and manage the fiscal deficit effectively.
– She dismissed any notions of imposing a lockdown in response to the ongoing conflict in West Asia and encouraged political leaders to refrain from spreading fear and rumors.
– Measures to Shield Consumers
– Retail fuel prices have remained stable despite a significant increase in global crude prices, which climbed from $70 to $122 per barrel within a month.
– We are ensuring that the people of India do not suffer, Sitharaman asserted, highlighting the government’s broader strategy to protect citizens while promoting economic growth.
– On the same day, the government reduced excise duty on petrol by ₹10 per liter and eliminated the diesel duty, while imposing export taxes on refiners to ensure adequate domestic supply.
– These measures aim to prevent the spike in international oil prices from driving domestic inflation and volatility, with an anticipated revenue loss of approximately ₹7,000 crore.
– Addressing Oil Marketing Companies’ Losses
– The minister noted that oil marketing companies faced losses of about ₹24 per liter for petrol and ₹13 per liter for diesel.
– Criticism of the New GDP Series
– In response to criticism surrounding the new GDP series, Sitharaman clarified that these adjustments are routine, having been conducted multiple times since Independence.
– The updated series draws from over 300 data sources and 1,400 variables, incorporating GST data, digital financial flows, and labor surveys for improved accuracy in tracking economic activity.
In conclusion, Finance Minister Nirmala Sitharaman’s statements reflect a proactive approach to managing the fiscal implications of rising oil prices while assuring stability and support for consumers. As the government navigates this challenging landscape, fiscal vigilance remains a priority to safeguard the economy.