Budget 2018: Govt's subsidy burden to go up by 10% to Rs 2.93 trillion

The fertiliser subsidy is projected to rise eight per cent to Rs 701 billion in 2018-19, as against Rs 649.7 billion in the Revised Estimates for 2017-18

The central government’s subsidy burden is expected to rise by about 10 per cent to Rs 2.93 trillion in 2018-19, primarily due to a 21 per cent increase in food subsidy. Fertiliser subsidy is expected to rise by eight per cent and petroleum subsidy only marginally. Interest subsidy is to go down by 11 per cent to Rs 209.2 billion.

There will be a 35 per cent scale-up in expenditure on account of the subsidy requirement under the National Food Security Act. A provision of Rs 1.38 trillion has been made; the current financial year is likely to end with