Union finance minister Nirmala Sitharaman has assured the Rajya Sabha that the government will achieve the 4.3% fiscal deficit target in 2026-27 despite a steep reduction in central excise duty on petrol and diesel.
The minister cited efficient revenue and expenditure management, including non-tax revenue, as the key factors that will help the government meet its fiscal target.
She added that the government will mobilise additional resources, prioritise growth-induced expenditure, and improve the targeting of welfare expenditure to achieve the target.
The government has approved the Finance Bill 2026, which includes a ₹10 reduction in special additional excise duty (SAED) on petrol and diesel each due to global energy supply disruptions.
However, the revenue loss from this reduction is estimated to be around ₹7,000 crore in a fortnight, and ₹1,70,000 crore in a full financial year.
The minister also clarified that the new gross domestic product (GDP) series will not belittle previous numbers, but will provide more accurate and reliable estimates using over 300 data sources and 1,400 variables.
