Budget 2023: Subsidies on fertiliser reduced by 22 pc, food 31 pc

1 February, 2023 | Pragati Singh

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Fertiliser subsidies have been reduced from Rs 225,220 crore to Rs 175,100 crore in 2023-24. In 2023-24, it has been decreased from Rs 287,194 crore to Rs 197,350 crore for food.

Subsidies for fertiliser and food have been lowered by 22% and 31%, respectively, in comparison to the revised budget forecasts for the current fiscal year ending March 2023. As a result, fertiliser subsidies have been reduced from Rs 225,220 crore to Rs 175,100 crore in 2023-24. In 2023-24, it has been decreased from Rs 287,194 crore to Rs 197,350 crore for food.

Subsidies for fertiliser and food increased significantly in 2022-23 as a result of the free food programme and the global rise in fertiliser prices. Fertilizer subsidies are expected to climb from Rs 105,222 crore (Budget estimate) to Rs 225,220 crore in 2022-23. (revised estimate).

Food subsidies were increased from Rs 206,831 crore (Budget projection) to Rs 287,194 crore (revised estimate). Meanwhile, the Indian economy is supported by robust macroeconomic fundamentals, as seen by a plethora of indicators.

Capital spending, bank asset quality, foreign exchange reserves, GST collections, fiscal consolidation, and convergence of wholesale and retail inflation were all positive signs in the budget document data.For the third year in a row, capital investment spending is being boosted by 33% to Rs 10 lakh crore for 2023-24, or 3.3% of GDP.

“This will be almost three times the outlay in 2019-20,” stated Finance Minister Nirmala Sitharaman in her Budget statement on Wednesday. Capital spending, bank asset quality, foreign exchange reserves, GST collections, fiscal consolidation, and convergence of wholesale and retail inflation were all positive signs in the budget document data.

This latest rise, she said, is critical to the government’s attempts to boost economic potential and job creation, attract private investment, and provide a buffer against global headwinds. Union Finance Minister Nirmala Sitharaman presented the Union Budget on Wednesday, setting the budget deficit target for 2023-24 at 5.9 percent of GDP (GDP). The government estimates a 6.4% fiscal deficit in 2022-23.

The Finance Minister also stated that the administration plans to reduce the fiscal deficit to less than 4.5 percent of GDP by fiscal year 2025-2026. The Economic Survey, which was tabled in Parliament on Tuesday, stated that India’s GDP is likely to increase at a rate of 6 to 6.8 percent in the fiscal year 2023-24. This compares to a projected 7.7 percent this fiscal year and 8.7 percent in 2021-22.