Govt's fuel price cut hits Yogi's fiscal math ahead of election year

The annual loss in revenue is pegged at Rs 40 billion, UP scrambling for alternative resources

The government's decision to slash the prices of petrol and diesel by Rs 2.50 per litre last week to provide relief to the common man, has disturbed the fiscal math of Uttar Pradesh's Yogi Adityanath-led government ahead of the crucial election year.

The slashing of VAT on petrol and diesel is estimated to hit the state’s tax revenue by Rs 40 billion on an annual basis. Since, only six months remain for the current financial year to come to an end, the state's Commercial Tax Department would forego tax of about Rs 20 billion till March 2019.

A senior UP