India’s Subsidy Bill: Subsidy bill increased, estimated to be 2 lakh crore more than the budget, other sectors will be affected
The subsidy bill of the Government of India may be 2 lakh crore more than the budget estimates in this financial year.
Due to the increase in the subsidy bill, the government may have to cut the remaining expenses.
Ten percent of the total expenditure of the Government of India is spent on subsidy every year.
New Delhi. News agency Bloomberg has given some information related to subsidy of farmers in a report quoting sources. In this report, it has been learned that the government of India spends every year on subsidy to support the poor and farmers, it can jump by more than one-third this year. Due to this boom, the government may be forced to cut the expenditure in other areas. Along with this, money may also have to be taken from small savings funds to meet additional expenses.
According to this report, the Government of India’s subsidy expenditure on food, fertilizer and fuel may increase to Rs 5.4 lakh crore i.e. about $67 billion in this financial year. while the government budget While presenting, a provision of only Rs 3.2 lakh crore was made for this.
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Know what was said in this report
According to the report, India is the third largest economy in Asia. However, due to the jump in commodity prices due to the Corona epidemic and the Ukraine war, it is currently struggling with a jump in its subsidy bill. This will be the third consecutive financial year of increase in subsidy bill. Explain that about 10 percent of the total expenditure of the Government of India is spent on subsidy.
Tax collection expected to exceed target
It was told by the officials in the report that the government has set a target of keeping its fiscal deficit below 6.4 per cent of GDP. In such a situation, the government will change its spending priorities and borrow more from the Small Savings Fund. Officials also told that the tax collection in this financial year is going to be more than the estimated target, but it will not be enough to meet the needs of additional expenditure.
Next budget will come amid recession
When questioned on this news, the spokesperson of the Ministry of Finance refused to comment. Meanwhile, the Modi government has also started the work of preparing the budget for the next financial year, which is to be presented in February. Let us tell you that the upcoming budget will be presented at a time when the fear of recession in the world has intensified. At the same time, domestic growth has also slowed down and inflation is at a high level, due to which the cost of debt has increased.
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Tags: budget, finance minister, subsidies
FIRST PUBLISHED : November 16, 2022, 17:57 IST