Govt may shift chunk of FY21 subsidy burden to next fiscal
NEW DELHI: The finance ministry may shift a chunk of its subsidy burden from this year to the next fiscal, a practice it discontinued in FY20, as it expects the subsidy bill to top the ₹2.3 trillion budgeted. The rise in overall subsidies is the likely result of free ration and gas cylinders provided to the poor as a response to the coronavirus pandemic.
“We expect all major subsidies to rise significantly in FY21. While food subsidy will rise because of the free ration provided under the Garib Kalyan Yojana and Atmanirbhar package, fertilizer subsidy will rise due to bumper crops both in Kharif and Rabi seasons. Petroleum subsidy is also expected to see an increase because of free cooking gas cylinders provided under the Garib Kalyan Yojana,” a finance ministry official said under condition of anonymity.
Under the ₹1.93 trillion Garib Kalyan Yojana, about 800 million people were provided 5 kg of wheat or rice each month for free over and above the 5 kg they are entitled to.
