New Delhi, May 16: Piyush Goyal on Friday said the Centre has absorbed substantial fiscal costs through lower fuel taxes and high fertiliser subsidies to shield consumers and farmers from rising global commodity prices.
Speaking on the sidelines of an event, Goyal stated that the government had reduced excise duty on fuel by ₹10 despite mounting financial pressure, as part of broader efforts to contain inflationary impact on households and businesses.
He also highlighted the Centre’s continued support for the agriculture sector through large-scale fertiliser subsidies, aimed at ensuring farmers are not burdened by higher input costs amid global price volatility.
According to the minister, the government is bearing nearly 90% of fertiliser costs through subsidies amounting to lakhs of crores, allowing fertiliser prices for farmers to remain unchanged despite elevated international prices.
The remarks come at a time when global energy and commodity markets remain volatile due to geopolitical tensions and supply disruptions, increasing fiscal pressure on governments worldwide.
Commenting on the Maharashtra government’s decision to reduce VAT on aviation turbine fuel (ATF), Goyal said the move would provide relief to the civil aviation industry and support tourism-related economic activity.
He noted that the aviation sector has been under considerable financial strain and described it as strategically important for India’s long-term economic growth and connectivity.
The minister also suggested that other opposition-ruled states could adopt similar tax rationalisation measures to support economic sectors facing cost pressures.
Separately, Goyal commented on security arrangements concerning Narendra Modi, stressing that there should be no compromise on the Prime Minister’s protection given his national and global leadership role.
Overall, the government’s policy approach reflects an attempt to balance inflation management, fiscal support for key sectors, and consumer protection amid ongoing global economic uncertainty.
