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Press Information Bureau
Government of India
Ministry of Finance
11-July-2014 14:55 IST
Reduction in Subsidy

The provision made during interim budget for major subsidies during 2014-15 are as under:

 

            (i)         Fertilizer Subsidy        -           Rs. 67970.30 Cr.

            (ii)        Food Subsidy  -                       Rs. 115000.00 Cr.

            (iii)       Petroleum Subsidy      -           Rs. 63426.95 Cr.

            (iv)       Interest Subsidies        -           Rs.8462.88 Cr.

            (v)        Other Subsidies           -           Rs. 847.49 Cr.

 

The provision made in R.E. 2013-14 for major subsidies are as under:

 

            (i)         Fertilizer Subsidy        -           Rs. 67971.50 Cr.

            (ii)        Food Subsidy  -                       Rs. 92000.00 Cr.

            (iii)       Petroleum Subsidy      -           Rs. 85480.00 Cr.

            (iv)       Interest Subsidies        -           Rs. 8174.85 Cr.

            (v)        Other Subsidies           -           Rs. 1889.90 Cr.

 

The outlay of Union Government on ‘Major Subsidies’ is one of the major items of Revenue Expenditure (Non-Plan). It is the constant endeavor of the Government to bring down expenditure on Central subsidies while keeping in mind the support to marginally poor, SCs and STs.

 

Government has deregulated diesel prices in small increments. This is likely to reduce burden of Petroleum subsidy. Measures have also been initiated to reduce the administrative overheads for optimum utilization of outlays meant for food subsidy and rationalize fertilizer subsidy. Further, the strategy for direct transfer of subsidy using the Aadhar platform would ensure substantial economies in subsidy outgo. 

 

This information was given by the Minister of State for Finance, Smt. Nirmala Sitharaman in written reply to a question in Lok Sabha today.

 

 

DSM/ka

 

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