New Delhi, Oct 2 : Total major subsidies — on food, nutrient-based fertilisers, urea and petroleum — accounted for Rs 1.89 lakh crore up to August of this fiscal which is 63 per cent of the budgeted amount, according to the latest numbers of Controller of Government Accounts (CGA).
The total major subsidies in the budget estimates are Rs 3,01,694 crore or Rs 3.01 lakh crore. Up to August, Rs 1,89,526.71 (Rs 1.89 lakh crore) has been used for payment towards subsidies amounting 63 per cent of the Budgeted amount, the CGA numbers showed. This was 65 per cent in thee same period a year ago.
Food subsidy has seen lower payment during the period where Rs 1,13,725.63 crore or Rs 1.13 lakh crore has been spent (62 per cent of the Budget) on a comparative basis. In the same period last fiscal, it was 72 per cent of the Budget amount, at Rs 1,21,416.69 crore or Rs 1.21 lakh crore. The Budgetary allocation for food subsidy was Rs 1.84 lakh crore (Rs 1,84,220 crore).
The second highest subsidy was to urea in the April-August period where Rs 32,692.84 crore which is 61 per cent of the Budgeted figure, as against 43 per cent in the same period a year ago. The Budget allocated Rs 53, 629 crore for urea subsidy.
The third highest subsidy amount is on petroleum, at Rs 28,385.08 crore during the April-August period which is 76 per cent of the Budget estimates. On a COPPY (Corresponding Period of the Previous Year) basis, it was 74 per cent. The Budget estimates of the petroleum subsidy is Rs 37,478 crore.
Subsidy on nutrient-based fertilisers was Rs 14,723.16 crore in the period upto August 2019 from April and this was 56 per cent of the amount budgeted. On a COPPY basis, it was 46 per cent. The Budget figure for nutrient based fertliser was Rs 26,367 crore.
On the government’s fiscal position, CARE Ratings said: “Nearly 12 per cent of the revenue expenditure is budgeted towards subsidies. 63 per cent of the allocated amount towards subsidies has been incurred between Apr-Aug ’19, lower than 65 per cent in the comparable period a year ago. This can be ascribed to lower expenditure incurred towards food subsidies.”