Budget 2021

Union Budget 2018: Subsidy bill on food, fertilisers, oil up 15% at ₹2.6 lakh crore

A man sprays fertiliser onto a wheat field on the outskirts of Ahmedabad. File   | Photo Credit: REUTERS

Subsidies on food, fertilisers and petroleum have been pegged higher by 15% to ₹2.64 lakh crore for the 2018-19 fiscal.

The subsidy bill on food, petroleum and fertilisers is estimated at ₹2,64,335.65 crore for the financial year 2018-19, according to the Budget 2018-19 presented by Finance Minister Arun Jaitley in Parliament on February 1.

The subsidy bill is seen at ₹2,29,715.67 crore for the current financial year 2017-18, as per the revised Budget estimates.

The government has earmarked ₹1,69,323 crore for food subsidy in the next fiscal as against ₹1,40,281.69 crore in the revised estimate of this fiscal.

Food subsidy bill is pegged higher for the next fiscal on account of rising procurement cost and the government’s decision to keep selling prices unchanged in the National Food Security Act, under which highly subsidised food grains is provided to over 80 crore people.

Fertiliser subsidy has been hiked to ₹70,079.85 crore for 2018-19 fiscal as against the revised estimate of ₹64,973.5 crore in the current financial year. For fertiliser subsidy, the government has allocated ₹44,989.5 crore in the next fiscal for urea sector as against ₹42,721.7 crore this fiscal.

The budget allocation for phosphatic and potassic (P&K) fertilisers under the nutrient based subsidy scheme has been increased to ₹25,090.35 crore next fiscal from ₹22,251.8 crore in the current financial year.

Petroleum subsidy has been increased to ₹24,932.8 crore for 2018-19 from estimated ₹24,460.48 crore in this fiscal.

Of ₹24,933 crore for the next fiscal, the allocation for LPG subsidy is 20,377.80 and ₹4,555 crore for kerosene.

As per the revised estimate for 2017-18, LPG and kerosene subsidies are seen at ₹15,656.33 crore and ₹8,804.15 crore, respectively.

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Printable version | Jul 22, 2021 3:44:07 PM | https://www.thehindu.com/business/budget/union-budget-2018-subsidy-bill-on-food-fertilisers-oil-up-15-at-26-lakh-crore/article22623247.ece

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