India faces Rs 50,000-crore subvention overshoot

India’s subsidy bill for the current fiscal year is anticipated to surge by approximately Rs 50,000 crore, primarily attributed to increased spending on essential sectors such as fertilizers, cooking gas, and food security.

- 

The budget allocation for FY24 was initially set at Rs 4.03 trillion for subsidies but may escalate to Rs 4.53 trillion. However, despite this amplified spending, it remains notably lower than the previous fiscal year’s subsidy outlay of Rs 5.62 trillion.

A senior government official cited by the Economic Times highlighted that the augmented outgo towards subsidies specifically for food, fertilizers, and LPG will be managed through savings from other expenditure heads within the Rs 45 trillion FY24 budget.

The sharpest rise is anticipated in the fertilizer subsidy, projected to surge by Rs 25,000 crore from the initially budgeted Rs 1.75 trillion. Additionally, food and cooking gas subsidies might increase by Rs 15,000 crore and Rs 10,000 crore, respectively. Despite this augmentation, the official reassured that the overall subsidy outgo remains within manageable levels.