Govt may roll over Rs 33,000-35,000 crore in subsidy payments to FY20

Business Standard has learnt from senior government officials that the petroleum subsidy amount rolled over to FY20 will be around Rs 13,000 crore

To help meet its revised fiscal deficit target of 3.4 per cent of gross domestic product for 2018-19, the Centre is highly likely to rollover as much as Rs 33,000-35,000 crore in combined food, petroleum and fertiliser subsidies to 2019-20. Additionally, Business Standard has learnt that the 2019-20 interim Budget assumed an average crude oil price of $65 a barrel for the next fiscal year, the same as this year.

If these sums are not rolled over, the fiscal deficit for this year could be as high as 3.55 per cent of gross domestic product (GDP). The combined fertiliser, food and