• Reemi verma
• Dr. Prakash C. Antahal

Abstract:-Fuel Subsidy has not only affected the fiscal position of India but of the whole world. It encompasses a long list of continuing and urgent problems like they distort the market; the subsidized product sells for less than it costs to produce, and so we buy more of it than we would without the subsidy. Making things worse, unsubsidized alternatives are placed a disadvantage, and may struggle to exist, create economic distortions, fiscal deficit, increase air pollution; reduce the competitiveness of alternative fuels and their ability to gain market share. In India, the extent of subsidy is found to be more as compared to other countries because of low level of income, poverty, unemployment etc. Large scale under recoveries of the Oil Marketing Companies (OMCs) are highly destabilizing the Indian Central Government’s Finances. Subsidies are provided for kerosene, LPG, and other fossil fuels for the household sector in India. This study intends to study the impact of oil subsidy on the fiscal health of government. The main findings of this study are that there is positive correlation between fuel subsidy and fiscal deficit.

Fuel subsidy, fiscal deficit, under-recoveries, oil marketing companies (OMCs).

"Impact of Fuel Subsidy on Fiscal Deficit in India", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.5, Issue 7, page no.467-477, July-2018, Available :http://www.jetir.org/papers/JETIR1807531.pdf

"Impact of Fuel Subsidy on Fiscal Deficit in India", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.5, Issue 7, page no. pp467-477, July-2018, Available at : http://www.jetir.org/papers/JETIR1807531.pdf