Budget 2024: Overall Subsidy Bill Could See a Hike in FY26

The second budget of the Modi 3.0 government may feature a slightly higher subsidy allocation for food in FY26 compared to FY25, driven by rising food inflation and higher logistics costs, while fertilizer subsidies are expected to remain stable. The government had initially allocated Rs 205,250 crore for food subsidies in FY25, 3.34 percent lower than the revised estimate for FY24, and Rs 164,000 crore for fertilizer subsidies, down 13.18 percent. However, with subsidy bills exceeding initial allocations, the government may need to revise the overall subsidy bill for FY25 and FY26 to manage fiscal pressures.

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