In the upcoming interim budget 2024, the Union Government is expected to Government may grant around Rupees 4 trillion for food and fertiliser subsidies.
The Ministry of Consumer Affairs, Food and Public Distribution has projected that the cost offood subsidies in 2019 will be 2.2 trillion rupees ($26.52 billion) which represents a 10% increase over the estimated spending for the current fiscal year, 2023–24, of nearly 2 trillion rupees ($24.11 billion). The fertilizer subsidy for the upcoming fiscal year can be anticipated to be 1.75 trillion rupees ($21.10 billion), which is less than the current estimate of nearly 2 trillion rupees for the fiscal year 2022–2023.
Conversely, the fertiliser subsidy for the upcoming fiscal year is expected to be 1.75 trillion rupees ($21.10 billion), a decrease from the current estimate of nearly 2 trillion rupees for the 2022-23 fiscal year.
An effective management of food and fertiliser subsidies is crucial for India’s fiscal deficit, targeted at 5.9 per cent of gross domestic product this year and there are chances that the government also aims to reduce it by at least 50 basis points in the fiscal year 2024-25.
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