Govt ‘on its toes’ to manage fiscal deficit, shield consumers from oil shock: Sitharaman

Finance Minister Nirmala Sitharaman on Friday said the government will stay “on its toes” to keep the fiscal deficit under control, even as it works to protect consumers from the impact of rising global crude oil prices amid tensions in West Asia.

Replying to a discussion on the Finance Bill, 2026 in the Rajya Sabha, the minister made it clear that fiscal discipline will remain a priority. At the same time, she indicated that the government is actively monitoring the situation and will respond as needed.

Focus on fiscal prudence and revenue mobilisation

Sitharaman said the Centre will continue to follow a cautious fiscal path, similar to recent years. Along with managing spending, the government will also look to boost non-tax revenues to maintain balance.

Her comments come at a time when global energy markets remain volatile, raising concerns about inflation and the fiscal burden of subsidies or tax cuts.

Relief on fuel prices despite global surge

One of the key steps highlighted was the government’s decision to cut excise duty on petrol and diesel by Rs 10 per litre. The move is aimed at preventing oil marketing companies from passing on higher global prices to consumers.

Sitharaman pointed out that while several countries have raised fuel prices by 20 to 50 per cent due to supply disruptions, India has managed to keep retail prices unchanged so far.

No lockdown in India, rumours dismissed

Addressing speculation around a possible lockdown, the minister dismissed such claims as baseless. She said there is no such move being considered in India and warned against misinformation that could create unnecessary panic.

To underline her point, she referred to developments in Pakistan, where fuel prices have reportedly surged sharply and restrictions have been imposed in some areas to manage the situation. She stressed that India is not facing such conditions.

Geopolitical tensions in focus

The minister also acknowledged that the ongoing conflict involving the US, Israel and Iran has created uncertainty in global energy markets. Despite this, she said India has managed the situation relatively well compared to several other countries.

Finance Bill clears Rajya Sabha

Later in the day, the Rajya Sabha returned the Finance Bill, 2026 to the Lok Sabha by voice vote, completing the budget process for the upcoming financial year starting April 1.