New Delhi: Subsidies on food, fertiliser and petroleum have been reduced by over 10 per cent 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 Budget proposals presented by the Finance Minister in Parliament.
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.