BUDGET
FY27 subsidy bill seen at INR 4.55 tln, down 3.14% on year
This story was originally published at 14:04 IST on 1 February 2026
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--BUDGET: FY27 food subsidy seen at INR 2.28 tln
--BUDGET: FY26 food subsidy seen INR 2.282 tln vs INR 2.034 tln Budget aim
--BUDGET: FY27 petroleum subsidy seen at INR 120.85 bln
--BUDGET: FY26 petroleum subsidy seen INR 151.21 bln vs INR 121 bln Budget aim
--BUDGET: FY27 fertiliser subsidy seen at INR 1.708 tln
--BUDGET:FY26 fertiliser subsidy seen INR 1.86 tln vs INR 1.68 tln Budget aim
--BUDGET: FY27 food subsidy seen at INR 2.276 tln
--BUDGET: FY26 food subsidy seen INR 2.282 tln vs INR 2.034 tln Budget aim
--BUDGET: FY27 petroleum subsidy seen at INR 121 bln
--BUDGET: FY26 petroleum subsidy seen INR 151 bln vs INR 121 bln Budget aim
--BUDGET: FY27 fertiliser subsidy seen at INR 1.708 tln
--BUDGET:FY26 fertiliser subsidy seen INR 1.87 tln vs INR 1.68 tln Budget aim
NEW DELHI – The government has pegged its total subsidy bill for 2026-27 (Apr-Mar) at INR 4.55 trillion, down 3.14% on year from the revised estimate of INR 4.70 trillion for the current fiscal year. The budget estimate for the subsidy bill for FY26 was INR 4.26 trillion.
The government aims to spend INR 1.71 trillion on fertiliser subsidies next year. The revised estimate for the fertiliser subsidy bill is INR 1.86 trillion, up 11% from the Budget estimate of INR 1.68 trillion for FY26. The government has pegged its food subsidy bill for FY27 at INR 2.28 trillion. It has also revised the food subsidy bill for FY26 to INR 2.28 trillion from the budget estimate of INR 2.03 trillion.
The government's major subsidies include food, fertilisers, and petroleum products. For FY27, the government has estimated the petroleum subsidy bill at INR 1.21 trillion, against the revised estimate of INR 1.51 trillion for the current year.
The following table details government subsidies, in INR billion, as per the Budget proposals:
Major subsidies | FY27 Budget Estimate | FY26 Revised Estimate | FY26 Budget Estimate | Y-O-Y % change (FY27 BE vs FY26 RE) |
Food subsidy | 2,276.29 | 2,281.54 | 2,034.20 | -0.23% |
Fertiliser subsidy | 1,707.99 | 1,864.60 | 1,678.87 | -8.40% |
Petroleum subsidy | 120.85 | 151.20 | 121.00 | -20.07% |
Interest subsidies | 274.41 | 246.66 | 278.40 | 11.25% |
Other subsidies | 168.20 | 151.05 | 149.69 | 11.35% |
Total subsidies | 4,547.73 | 4,695.05 | 4,262.16 | -3.14% |
End
Reported by Krity Ambey and Astha Oriel
Edited by
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