Context: The increased tax burden due to excise duties cannot help growth.
Background: While the Budget indicated a 2.7 times larger fiscal deficit of 9.5% for FY2020-21, the compensation of deficit with the excise duty had gone up.
Implications of raising excise duty:
Change in the fiscal policy regime: as justified in the Economic Survey 2020-21
Issues with the change in the fiscal policy regime:
Conclusion: Maintainable debt and expenditure shall be the vehicle of development as opposed to increased tax burdens.