Budget 2021 is nearing and people want to know what its various components are all about. So, today we will tell you what is subsidy in short and easy manner. Zee Business Managing Editor and Market Guru, Anil Singhvi has explained the subsidy in an easy way in today's episode.

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According to Anil Singhvi, subsidy means economic benefit or help given by the government. The public should keep an eye on the amount of subsidy because the Budget is assessed on the amount of subsidy provided to the people by the government.

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"However, the market wants the government to give low subsidy so that the burden on the government treasury can be minimum. But for those who are economically weak or some important products which need to be made available at low prices, the government provides subsidy," he said.

According to the Market Guru, the government subsidizes fertilizer, kerosene, LPG cylinders, food items, and in some cases the government gives it on interest basis. However, the subsidy figures have a significant impact on the government's balance sheet as well. On this basis, it is estimated that the government will be able to meet its fiscal deficit target. While watching the budget, keep an eye on where and how much subsidy will be provided by the government," he concluded.