States to get Rs 227 billion windfall from rupee plunge, crude spike

Since March, petrol and diesel prices have increased by Rs 5.60 and Rs 6.31, respectively, in Delhi

The continuing plunge in the rupee, coupled with the rising crude oil prices, will give the states a windfall in tax revenues to the tune of Rs 227 billion over and above the budget estimates for the current financial year, says a report.

The rupee plumbed a new life-time low of 72.73 to a dollar, falling 28 paise on Tuesday on strengthening American currency as crude prices went past the $78-a-barrel mark. This also pulled down the markets, with the benchmark Sensex crashing by over 509 points or 1.34 per cent, to close at 37,413.13.

The rupee opened on a