BUDGET
FY26 subsidy bill seen at INR 4.26 tln, down 0.4% on year
This story was originally published at 13:18 IST on 1 February 2025
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--BUDGET: FY26 food subsidy seen at INR 2.034 tln
--BUDGET: FY25 revised food subsidy at INR 1.974 tln
--CONTEXT: FY25 Budget pegged food subsidy at INR 2.053 tln
--BUDGET: FY26 petroleum subsidy seen at INR 121 bln
--BUDGET: FY25 revised petroleum subsidy to INR 147 bln
--CONTEXT: FY25 Budget pegged petroleum subsidy at INR 119 bln
--BUDGET: FY26 fertiliser subsidy seen at INR 1.679 tln
--BUDGET: FY25 revised fertiliser subsidy to INR 1.713 tln
--CONTEXT: FY25 Budget pegged fertiliser subsidy at INR 1.64 tln
MUMBAI – The government on Saturday pegged its total subsidy bill for 2025-26 (Apr-Mar) at INR 4.26 trillion, down 0.4% from the revised estimate of INR 4.28 trillion for the current fiscal year. The revised estimate for the subsidy bill in FY25 is almost the same as the Budget estimate.
The revised estimate for the fertiliser subsidy bill is at INR 1.71 trillion, up INR 73 billion from the Budget estimate. Next year, the government aims to spend INR 1.68 trillion on fertiliser subsidies.
The government has pegged its food subsidy bill for FY26 at INR 2.03 trillion. It has also revised the food subsidy bill for FY25 to INR 1.97 trillion from INR 2.05 trillion.
The government's major subsidies include food, fertilisers, and petroleum products. For FY26, the government has estimated the petroleum subsidy bill at INR 121 billion, against the revised estimate of INR 147 billion for the current year.
The following table details government subsidies, in INR billion, as per the Budget proposals:
| Major subsidies | FY26 Budget Estimate | FY25 Revised Estimate | FY25 Budget Estimate | Yr-on-yr % change (FY26 BE vs FY25 RE) |
| Food subsidy | 2,034.20 | 1,974.20 | 2,052.50 | 3.0 |
| Fertiliser subsidy | 1,678.87 | 1,712.98 | 1,639.99 | (-)2.0 |
| Petroleum subsidy | 121.00 | 147.00 | 119.25 | (-)17.7 |
| Interest subsidies | 278.40 | 281.56 | 295.50 | (-)1.1 |
| Other subsidies | 149.68 | 162.94 | 176.98 | (-)8.1 |
| Total subsidies | 4,262.16 | 4,278.68 | 4,284.23 | (-)0.4 |
End
Reported by Krity Ambey and Ashna Mariam George
Edited by Saji George Titus
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