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INDIAN ECONOMY

Union Budget 2023: 'Indian Government aims for $17 billion cut in food, fertiliser subsidies'

NEW DELHI: Indian Government is going to cut subsidies on food and fertiliser to 3.7 trillion rupees ($44.6 billion) in the financial year from April, down 26% from this year, two government officials said, to control financial shortage that ballooned during the Covid-19 pandemic.

Both Food and fertiliser subsidies hold one-eighth of India's total budget spending of 39.45 trillion rupees in this financial year,but reductions food and fertiliser subsidies may affect upcoming elections.

The Central Government expects for food subsidies in coming financial year is around 2.3 trillion rupees, but it was 2.7 trillion rupees for the current financial year to 31 March 2023, the two officials said.

While fertiliser subsidies will fall around 1.4 trillion rupees, according to one of the officials and third government official. But it 2.3 trillion rupees for the current financial year, the third official added.

The officials avoid to tell their name because the information was not public. The finance ministry avoid to comment, also food and fertiliser ministries ignore to requests for comment.