{"id":185996,"date":"2022-05-23T21:00:52","date_gmt":"2022-05-23T15:30:52","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=185996"},"modified":"2022-05-23T21:00:52","modified_gmt":"2022-05-23T15:30:52","slug":"states-must-follow-centres-fuel-tax-cuts","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/states-must-follow-centres-fuel-tax-cuts\/","title":{"rendered":"States must follow Centre\u2019s fuel tax cuts"},"content":{"rendered":"\n<p><strong>News: <\/strong>Government has announced lowering excise duties on petrol and diesel as well as offering a subsidy for LPG cylinders.<\/p>\n<p>States must also reduce the taxes on oil. The combined impact of tax cuts will provide much-needed relief to stressed household budgets and small business balance sheets.<\/p>\n<p>Because unlike previous inflationary pressure, that took place along with high economic growth, this time, it has arrived\u00a0in the backdrop of five years of economic weakness and a pandemic shock.<\/p>\n<h5><strong>How has increasing inflation helped government?<\/strong><\/h5>\n<p>A sharp rise in inflation has helped central governments in two ways:<\/p>\n<p>1.) First, buoyant tax collections. GoI\u2019s net tax revenue between April 2021 and February 2022 was almost Rs 3.75 lakh crore higher than what was collected two years ago in a pre-pandemic year.<\/p>\n<p>2.) Second, growth of nominal GDP has outpaced liability of interest on government borrowings.<\/p>\n<p>Similarly, state governments have also benefitted from inflation. The ratio of fiscal deficit to state domestic product in 2022-23 is lower than the cap fixed by GoI for many states.<\/p>\n<p><strong>Source<\/strong>: This post is created based on the article <strong>&#8220;States must follow Centre\u2019s fuel tax cuts&#8221;<\/strong> Published in <strong>Times of India<\/strong> on 23<sup>rd<\/sup> May 2022.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>News: Government has announced lowering excise duties on petrol and diesel as well as offering a subsidy for LPG cylinders. States must also reduce the taxes on oil. The combined impact of tax cuts will provide much-needed relief to stressed household budgets and small business balance sheets. Because unlike previous inflationary pressure, that took place&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/states-must-follow-centres-fuel-tax-cuts\/\">Continue reading <span class=\"screen-reader-text\">States must follow Centre\u2019s fuel tax cuts<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,10496],"class_list":["post-185996","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-times-of-india","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704905705},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/185996","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=185996"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/185996\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=185996"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=185996"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=185996"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}