Budget 2024: Outgo towards food subsidy pegged at Rs 2.05 lakh crore for 2024-25 says FM Nirmala Sitharaman
Food subsidy is provided to meet the difference between the economic cost of foodgrains procured by the government and their sales realisation at the PDS rate called central issue price (CIP) under the National Food Security Act (NFSA) and other welfare schemes.
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Budget 2024: The outgo towards food subsidy is pegged at Rs 2.05 lakh crore for 2024-25, down from Rs 2.12 lakh crore in the current fiscal, Finance Minister Nirmala Sitharaman said on Thursday.
She also noted that the government estimates fertilizer subsidy for FY25 at Rs 1.64 lakh crore, down from Rs 1.89 lakh crore in the ongoing financial year.
Food subsidy is provided to meet the difference between the economic cost of foodgrains procured by the government and their sales realisation at the PDS rate called central issue price (CIP) under the National Food Security Act (NFSA) and other welfare schemes.
Similarly, the Centre provides fertiliser subsidies to manufacturers.
The government fixes the MRP of urea being sold in the market. The difference between the selling price and production cost is provided as a subsidy.
A nutrient-based subsidy is also being provided on non-urea fertilisers like DAP and MOP.
In petroleum, subsidies are mainly provided on LPG.
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