New Delhi: The government hiked excise duty on petrol by Rs 1 per litre and that on diesel by Rs 1.5 per litre, Press Trust of India reported.
The raise in excise duty on the fuels will help the government raise revenue and stick to its fiscal deficit target for financial year 2015-16.
Prior to Saturday’s hike, the government has raised excise duty on petrol and diesel four times in quick succession, which will help it garner an additional Rs 14,000 crore in the current fiscal year and partly make up for the shortfall in disinvestment receipts and direct tax collections.
The higher realisation from further excise duty hike will come in handy for the government to maintain fiscal deficit at 3.9 per cent of GDP in current financial year ending March 31, 2016.
India’s fiscal deficit was Rs. 4.9 lakh crore ($71.90 billion) during April-December, or 87.9 per cent of the full-year target, according to government data.