Government’s subsidies to decline 39% to Rs 4,33,108 cr in FY22; to further drop next fiscal

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It has been reported that The government’s subsidies on food, fertilisers and petroleum are estimated to decline by 39 percent to Rs 4,33,108 crore in the current fiscal, according to the Budget document.

During 2022-23, the subsidies are estimated to further decline by 27 percent to Rs 3,17,866 crore, the report said.

In its revised budget estimate for 2021-22 fiscal, the government pegged total subsidies to be at Rs 4,33,108 crore as against the actual budget estimate of Rs 7,07,707 crore in the previous financial year.

Out of which, the food subsidy is estimated to increase to Rs 2,86,469 crore in the current fiscal from Rs 5,41,330 crore in 2020-21 fiscal, while petroleum subsidy is estimated to decline to Rs 6,517 crore from Rs 38,455 crore in the said period, the report said.

However, fertiliser subsidy is estimated to increase to Rs 1,40,122 crore during the ongoing fiscal from Rs 1,27,922 crore in the previous fiscal.

For the next 2022-23 fiscal, the government said total subsidies are estimated to further decline to Rs 3,17,866 crore from Rs 4,33,108 crore in the current fiscal, the report said.

Out of which, fertiliser subsidy is estimated to decline by 25 percent to Rs 1,05,222 crore during 2022-23 fiscal from Rs 1,40,122 crore this year, while food subsidy is estimated to decline by 28 per cent to Rs 2,06,831 crore from Rs 2,86,469 crore in the said period.

Petroleum subsidies are estimated to decline by 11 percent to Rs 5,813 crore during 2022-23 fiscal as against Rs 6,517 crore in the current fiscal. (Economic Times)