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Budget Byte: What Sitharaman may have planned for subsidies in Budget

A lot of Budgetary funds get saved on subsidies in March, as off-Budget small savings replace them. It remains to be seen how it goes this year

Budget Byte | Budget 2021 | Union Budget

Abhishek Waghmare  |  New Delhi 

Budget Byte: What has Sitharaman for subsides in the upcoming Budget

form a major part of central government spending. Their level has declined in the longer time frame — mostly due to lower oil prices — but the outgo has been rising in recent years on account of higher LPG subsidy. Since last few years, a considerable part of food subsidy is being managed through small savings, outside the Budget.

But unlike every year, saw a weak outflow in the initial months this year. As against front-loading, subsidy outgo was more uniform across months in FY21 to date. A lot of Budgetary funds get saved on in March, as off-Budget small savings replace them. It remains to be seen how it goes this year.

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First Published: Tue, January 12 2021. 18:15 IST