Government non-committal on cutting excise; oil price rise to inflate import bill by up to $50 billion

NEW DELHI: Remaining non-committal on cutting excise responsibility to ease the load from emerging oil prices, govt mentioned today that the new spurt in global rates is a matter of shock as it would inflate import bill by way of up to $50 billion and have an effect on current account deficit (CAD).

Economic Affairs Secretary Subhash Chandra Garg mentioned alternatively that financial expansion may not be impacted by way of the upward thrust in oil prices, that have touched $80 in step with barrel -- very best since November 2014.

The govt is watching the placement and adequate steps can be taken, he told reporters right here without elaborating.

Asked if the federal government would narrow excise responsibility on petrol and diesel, he mentioned he has nothing to mention on excise responsibility entrance. "Just watch."

The spurt in oil prices will push up the oil import bill by way of $25 billion to $50 billion underneath other eventualities, he mentioned, adding that India spent $72 billion on oil imports closing year.

This would push up current account hole, but inflation is underneath control and the fiscal deficit scenario isn't worrisome both, he mentioned.

Garg mentioned foreign money in circulate has come down in the closing 4 days but scenario is completely standard now.

He also mentioned that some outflows in the bond and fairness markets were noticed but it is not alarming. "We are nowhere near a 2013-like situation," he mentioned.

Outflow of $Four-5 billion in a single and half month isn't over the top, he mentioned, adding that the federal government will continue with its borrowing programme and does now not see any explanation why to react.