Food, fertiliser and fuel subsidy pegged lower by 4.47 pc in FY27 Budget

The government's annual subsidy expense on food, fertiliser and fuel is pegged 4.47 per cent lower at Rs 4,10,495 crore during the 2026-27 fiscal.

According to the Union Budget 2026-27, the revised subsidy for food, fertiliser and fuel for the current 2025-26 fiscal year is estimated at Rs 4,29,735 crore.

Food subsidy is estimated at Rs 2,27,629 crore in the coming financial year beginning April 2026, lower than the revised estimate of Rs 2,28,154 crore for the current financial year.

Major expenditure on food subsidy is under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), under which the government supplies free ration to more than 81 crore beneficiaries.

The second major expenditure is on fertiliser subsidy, which is also projected lower at Rs 1,70,805 crore for the next financial year, compared to the revised estimate of Rs 1,86,460 crore for the ongoing 2025-26 fiscal.

Of the total, subsidy on urea is projected at Rs 1,16,805 crore, while that for non-urea fertilisers is at Rs 54,000 crore during FY27.

Petroleum subsidy is estimated to be lower at Rs 12,085 crore for 2026-27 as against the revised estimate of Rs 15,121 crore for the current fiscal year.