Indian government may revise the excise duty collection target for 2023-24 downwards by Rs 45,000 crore. It is said to factor in some possible fiscal support in case crude oil prices continue to remain elevated.
However, the revision is not likely to impact the overall revenue mop-up as the other resources may make up for the shortfall. "Excise collection target may be revised downwards in the revised estimates by about ₹45,000 crore than in BE (budget estimates)," a senior finance ministry official told ET.
A final call on the matter is pending and will be taken by officials at the top level. The budgetary exercise is scheduled to begin from next week.
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The official said the Centre's excise collection is already lower than anticipated and the government also wants to take into account higher international crude prices. "We are keeping a close watch on the oil prices... There is no immediate concern but going forward we are budgeting for some headroom to absorb any future shock," the official added.
The domestic cooking gas subsidy for beneficiaries of the Ujjwala scheme was raised by the Cabinet on Wednesday by Rs 100 per cylinder to Rs 300. The government is also expected to cut taxes on fuels to lower prices ahead of the upcoming Lok Sabha elections in 2024.
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