Lowered fuel taxes and high fertiliser subsidies have shielded consumers and farmers from rising global commodity prices, according to Piyush Goyal, who said on Friday that the Centre has absorbed substantial fiscal costs.
As part of larger efforts to limit the impact of inflation on households and businesses, Goyal announced on the sidelines of an event that the government had lowered fuel excise duty by ₹10 despite increasing financial pressure.
While addressing the issue of farmers being hit hard by rising input costs due to global price volatility, he also brought attention to the fact that the government is still backing the agricultural sector through massive fertiliser subsidies.
The minister claims that farmers have not seen a change in fertiliser prices despite the high international prices because the government is subsidising the product to the tune of lakhs of crores, covering nearly 90% of the cost.
The comments are made as governments around the world are facing mounting fiscal pressure as a result of the continued volatility of global energy and commodity markets caused by geopolitical tensions and disruptions in supply.
Goyal stated that the reduction of value-added tax on aviation turbine fuel (ATF) by the Maharashtra government would help the civil aviation sector and boost the economy through tourism.
He pointed out that the aviation industry has been struggling financially and said that it is vital to India’s future prosperity and connectivity.
To bolster economic sectors experiencing cost pressures, the minister also proposed that other states ruled by the opposition implement comparable tax rationalisation policies.
In a separate statement, Goyal addressed Narendra Modi’s security arrangements, emphasising the need of ensuring the Prime Minister’s safety due to his position of national and international leadership.
In light of the persistent global economic uncertainty, the government’s policy stance aims to strike a balance between protecting consumers, supporting critical sectors financially, and managing inflation.
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