Revamp of subsidy regime likely to be in focus in FM Sitharaman's Budget

As of now, the proposal on the table is to consider direct benefit transfer to farmers for food and fertilizer subsidies, sources said

The Ministry of Finance is considering a revamp of the subsidy regime, with the focus being on food and fertiliser subsidies.

The proposal on the table, according to sources, is direct benefit transfer to farmers for both types of subsidies. However, there are administrative issues. 

A proposal to launch a pilot project for transferring urea subsidies to farmers’ accounts, instead of the current mechanism of crediting it to companies’ accounts, is being examined.

For food subsidies, however, the delay in payment to farmers under the PM Kisan Yojana has made farmers anxious, and hence direct benefit transfer has become a