India is considering allocating approximately Rs 4 trillion ($48 billion) for food and fertilizer subsidies in the next fiscal year, according to government sources. This cautious fiscal approach is ahead of the general election scheduled for this year. Food and fertilizer subsidies constitute around one-ninth of India’s total budget spending. The estimated food subsidy bill for the upcoming fiscal year is Rs 2.2 trillion ($26.52 billion), a 10% increase from the projected outlay for the current fiscal year. The fertilizer subsidy for the next fiscal year is expected to be Rs 1.75 trillion ($21.10 billion). This move is crucial for managing India’s fiscal deficit.
India Plans Rs 4 Trillion for Food and Fertilizer Subsidies in Upcoming Fiscal Year
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