Data Alert
Govt spent INR 4.54 tln on major subsidies in FY26, above target
This story was originally published at 14:04 IST on 2 June 2026
Register to read our real-time news.Informist, Tuesday, Jun. 2, 2026
NEW DELHI – The government's expenditure on major subsidies in 2025-26 (Apr-Mar) topped the revised Budget estimate, mainly because of higher spending on fertiliser subsidies. The government spent INR 4.539 trillion on food, fertiliser, and fuel subsidies in FY26, up 16.7% on year or INR 241 billion higher than the revised target, according to data from the Controller General of Accounts released Monday.
Expenditure on major subsidies in FY26 accounted for 106% of the revised Budget target of INR 4.297 trillion for FY26.
Spending on fertiliser subsidies jumped 21.7% on year to INR 2.114 trillion in FY26, reflecting increased pressure in view of supply and price shock due to the war in West Asia. The government spent INR 249 billion more on fertiliser subsidies in FY26 than the revised Budget target of INR 1.865 trillion.
The government's food subsidy bill grew 14.1% on year to INR 2.281 trillion in FY26, in line with the revised Budget aim of INR 2.282 trillion for the year. Spending on petroleum subsidies fell 0.7% on year to INR 143.85 billion in FY26. Petroleum subidy expenditure was only 95% of the revised Budget target of INR 151.21 billion.
For FY26, the government has revised upward the estimates for expenditure on major subsidies to INR 4.297 trillion from INR 3.834 trillion pegged in the Budget for FY26. The government's subsidy bill FY25 was INR 3.880 trillion.
The following table details major subsidies in FY26 (in INR billion):
| FY26 | FY25 | Revised Budget Estimates FY26 | Year-on-year change | |
| Food | 2,280.90 | 1,998.67 | 2,281.54 | 14.12% |
| Fertiliser | 2,113.80 | 1,736.90 | 1,864.60 | 21.70% |
| Petroleum | 143.85 | 144.79 | 151.21 | (-)0.65% |
| Total | 4,538.54 | 3,880.36 | 4,297.34 | 16.96% |
Source: Controller General of Accounts
End
Reported by Shweta
Edited by Akul Nishant Akhoury
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2026. All rights reserved.
To read more please subscribe
Share this Story:
