You are here: Home » Budget » News » Economy
Business Standard

Subsidy bill cut by 10% to Rs 2.27 lakh crore for 2015-16

Petroleum subsidy halved to Rs 30,000 crore

Press Trust of India  |  New Delhi 

Image via Shutterstock

Subsidies on food, fertiliser and petroleum have been reduced by over 10% to Rs 2.27 lakh crore for 2015-16, mainly due to a sharp cut in petroleum subsidies.

The subsidy bill on food, petroleum and fertilisers is estimated at Rs 2,27,387.56 crore for 2015-16, according to the proposals presented by the Finance Minister in Parliament..

Read our full coverage on Union Budget

The bill was Rs 2,53,913.12 crore in the for 2014-15 (revised estimates).

The government has earmarked Rs 1,24,419 crore for food subsidy in the next fiscal as against Rs 1,22,675.81 crore in the revised estimate of current fiscal. Of the total food subsidy, nearly Rs 65,000 crore is for implementation of National Food Security Act (NFSA).

Fertiliser subsidy has been pegged at Rs 72,968.56 crore for the next fiscal, higher than Rs 70,967.31 crore estimated for this year.

In fertiliser subsidy, the government has allocated Rs 38,200 crore for domestic urea and Rs 12,300 crore for imported urea. The remaining Rs 22,468.56 crore has been earmarked for sale of decontrolled P&K fertilisers.

Petroleum subsidy has been halved to Rs 30,000 crore for 2015-16 from estimated Rs 60,270 crore in the current fiscal. Of Rs 30,000 crore for next fiscal, Rs 22,000 crore has been earmarked for LPG subsidy and the rest is for kerosene.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sat, February 28 2015. 15:07 IST