Union Finance Minister Nirmala Sitharaman has assured that the government will achieve its 4.3% fiscal deficit target in 2026-27, despite a recent reduction in central excise duty on petrol and diesel. The minister cited efficient revenue and expenditure management, including non-tax revenue, as key factors in achieving this goal.
The government has approved the Finance Bill 2026, which was passed by the Lok Sabha on Wednesday and the Rajya Sabha on Friday. The bill aims to manage the government's fiscal stance carefully and mobilize additional resources through non-tax revenues.
Non-tax revenues include proceeds from disinvestment, interest earnings, and dividends. The government has also reviewed the special additional excise duty (SAED) on petrol and diesel, which was reduced by ₹10 due to global energy supply disruptions. The revenue loss is estimated to be ₹7,000 crore in a fortnight.
Experts estimate that if the situation continues throughout FY27, the revenue implication would be around ₹1,70,000 crore in a full financial year. However, the levy of tax on refiners for exports of diesel and aviation turbine fuel (ATF) is expected to fetch an estimated ₹1,500 crore in a fortnight.
The government has also introduced a new gross domestic product (GDP) series, which uses over 300 data sources and 1,400 variables to bring in granularity, accuracy, and reliability of estimates. The new series captures informal sector information and uses GST data to accurately assign output to the right states.
The Public Financial Management System (PFMS) real-time data reduces errors, avoids delays, and makes GDP estimates more accurate. The government is also using e-Vahan, rail, and air transport services data and fuel-related data to estimate better value for goods and services.
