Budget 2022: Fertiliser, Petroleum subsidies reduced substantially
Fertiliser subsidy, this year budget estimates show only Rs. 1.05 lakh crore, however last year figure was Rs. 1.40 lakh crore, the fall around 25 percent.
New Delhi: Union Finance Minister Nirmala Sitharaman has substantially reduced the subsidies for fertilizers, food and petroleum in the Budget 2022.
Due to substantial reduction of subsidies to three major sectors, fertlisers, food and petroleum products will be costlier in coming days.
The food subsidies have been reduced to 28 percent, as per revised estimates for 2021-2022, the figure was at Rs. 2.9 lakh crore, now it has been reduced to Rs.2.1 lakh crore, nearly a 27.59 percent drop in 2022-2023 Budget estimates.
Like fertiliser subsidy, this year budget estimates show only Rs. 1.05 lakh crore, however last year figure was Rs. 1.40 lakh crore, the fall around 25 percent.
Petroleum subsidy cut is the lowest among the three; it has been reduced to ₹ 5,800 crore from ₹ 6,500 crores in FY22, down 10.76 per cent.
The move to reduce subsidies will be closely watched in the near term as Prime Minister Narendra Modi-led BJP government is going into polls in five states, including Uttar Pradesh.
In terms of sector-wise allocation, the health, agriculture, defence and education sectors have witnessed a hike in budgetary allocation.