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Subsidies 8% of states' revenue spending

Financial Express Bengaluru

January 05, 2026

STATE GOVERNMENTS CONTINUE to devote a sizeable share of their budgets to subsidies, underscoring their role in welfare delivery while intensifying pressure on public finances.

- FE BUREAU

Support directed largely to the power and agriculture sectors remains a major component of states' revenue expenditure, raising concerns about fiscal sustainability and the limited headroom available for capital investment.

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