New Delhi: The government is likely to set aside around RS 3 Lakh Crore ($ 40 billion) on food subsidies and fertilizers in the budget next week for 2022-23, officials said, approximately the same number as the government described for this fiscal year ended Line up.
Subsidy bills have spin because of the steps of the relief pandemic for the poor and a sharp increase in the price of global chemicals.
New Delhi has raised fertilizer subsidies twice in this fiscal year, and the source said that the payment for 2021-22 could be the highest.
In the Minister of Finance of Nirmala Budget Sitharaman will be present on Tuesday, the government will allocate RS 1.1 lakhh crore to fertilizer subsidies, and Rs 2 Lakh Crore to Food Subsidies, three officials told Reuters with anonymous requirements.
The Ministry of Fertilizer has sought assistance as much as Rs 1.4 lakh Crore for 2022-23, another official said.
For the current fiscal year, the Ministry of Finance has budgeted Rs 83,500 Crore for fertilizer subsidies, although real allocation can rise to the 1.5 lakh rs crore record.
Bulk fertilizer subsidies are used to provide urea at a lower-government level for farmers.
The government also provides the amount of subsidies that remain to the company to sell other fertilizers with a lower level to help farmers, key sound banks.
For food subsidies, India has budgeted Rs 2.43 lakh Crore in 2021-22 even though the government then provided an additional Rs 60,000 Crore.
India usually revises its budget for fertilizer and food subsidies upwards in recent months of fiscal year.
Finance, fertilizer and Ministry of Food do not immediately reply to emails and messages that are looking for comments.
The price of global fertilizer has surged more than 200% over the past 12 months after the record rose at the price of two main energy sources – coal and natural gas – used to produce plant nutrition.
The budget allocation of RS 3 Lakh Crore for food and fertilizer subsidies is still higher than the average in seven years since Prime Minister Narendra Modi is in power, but is far below what can reach the Rs 4.8 lakh crore spent by the government for the same thing year.
In Indian subsidies form a tenth of the total annual expenses planned for this year.
Prime Minister Narendra Modi has tried to fulfill its long-term goals to reduce subsidies by handling corruption and mismanagement.
Any reduction of subsidies will affect the broad base of voters from farmers who contribute almost 60% of the population.
The election in Uttar Pradesh, was seen as a barometer for national elections due in 2024, along with leading Punjab grain producers and three other countries will begin on February 10.