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Informist, Friday, Jul. 31, 2026

 

NEW DELHI – The government's expenditure on major subsidies in the first quarter of 2026-27 (Apr-Mar) jumped 37.4% on year, driven by a surge in fertiliser subsidy outgo, data released by the Controller General of Accounts on Friday showed. Food subsidy spending also increased during the quarter, although the pace moderated, particularly in June. At INR 1.148 trillion, expenditure on major subsidies in Apr-Jun accounted for 28% of the Budget estimate of INR 4.105 trillion for FY27.

 

The government's major subsidies expenditure had accounted for 22% of the FY26 target in the corresponding period a year ago. 

 

The government's fertiliser subsidy bill rose 57.6% on year at INR 647 billion in Apr-Jun, as against INR 410 billion a year ago. Food subsidy during the period rose 17.9% on year to INR 499 billion. 

 

For FY27, the government has pegged expenditure on major subsidies at INR 4.105 trillion, down from INR 4.539 trillion in the last fiscal year.

 

The following table details major subsidies in Apr-Jun (in INR billion):

 

	Apr-Jun 2026	Apr-Jun 2025	Budget Estimate FY27	Year-on-year % change
Food	498.64	422.77	2,276.29	17.9
Fertiliser	646.67	410.22	1,707.99	57.6
Petroleum	2.82	2.55	120.85	10.6
Total	1,148.12	835.54	4,105.13	37.4

 

End

 

Reported by Priyasmita Dutta

Edited by Saji George Titus

 

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