Subsidy bill for FY13 to surpass Budget estimate

The Survey clearly indicates fiscal consolidation will be on the back of reduced oil subsidies

With the subsidy bill for the financial year 2012-13 set to exceed the Budget allocation of Rs 1.9 lakh crore, the government plans to focus on better targeting and plugging leakage, according to the Economic Survey. At the same time, it says, "Priority needs to be accorded to food subsidy, in view of the under-consumption of basic food by the poor and the extent of malnutrition." On this leading to a higher subsidy outgo, the Survey says this is a part of the challenge of prioritisation, to provide for this basic need while controlling other items of spending. It said ...