Budget 2016: Govt cuts down on subsidies for food, fertiliser and petroleum
Firstpost

Budget 2016: Govt cuts down on subsidies for food, fertiliser and petroleum


New Delhi: Subsidies on food, fertiliser and petroleum have been pegged lower by over four percent to nearly Rs 2.31 lakh crore for 2016-17. The subsidy bill on food, petroleum and fertilisers is estimated at Rs 2,31,781.61 crore for 2016-17 fiscal,
according to the Budget proposals presented by Finance Minister Arun Jaitley in Parliament.

The subsidy bill was Rs 2,41,856.58 crore for 2015-16 (revised estimates). The government has earmarked Rs 1,34,834.61 crore for food subsidy in the next fiscal as against Rs 1,39,419 crore in the revised estimate of this fiscal.

Arun Jaitley. PTI

Arun Jaitley. PTI

Fertiliser subsidy has been pegged at Rs 70,000 crore for 2016-17, lower than Rs 72,437.58 crore estimated for this financial year.

In fertiliser subsidy, the government has allocated Rs 51,000 crore for urea and Rs 19,000 crore for decontrolled phosphoric and potassic (P&K) fertilisers. Petroleum subsidy has been reduced to Rs 26,947 crore for 2016-17 from estimated Rs 30,000 crore in the current fiscal.

Of Rs 26,947 crore for next fiscal, Rs 19,802.79 crore has been earmarked for LPG subsidy and the rest is for kerosene. As per the document, out of total Rs 51,000 crore allocated for urea subsidy, Rs 40,000 crore has been earmarked for domestic urea, while the rest is for imported urea.

Similarly, for decontrolled phosphoric and potassic fertiliser (like DAP and MoP), Rs 12,000 crore is allocated for indigenously produced and Rs 6,999.99 crore for imported P&K fertilisers, and Rs 1 lakh for assistance on production of city compost.

PTI

First Published On : Feb 29, 2016 15:22 IST

Comment using Disqus

Show Comments