Major subsidies dip in Apr-Aug 2024, government accounts show

The government has managed to spend less on subsidies this year compared to a year ago. Data from the Controller General of Accounts shows expenditure on major subsidies fell marginally on year in Apr-Aug. The government spent Rs 1.786 trillion in 2024 in comparison to Rs 1.807 trillion in the same period last year. 

The expenditure accounted for 47% of the Budget estimate of Rs 3.812 trillion for 2024-25, compared to 48% in the same period of the previous financial year.

The dip is accounted for largely by a huge fall in fertiliser subsidies. The expenditure on fertiliser subsidy is down 37% on year at Rs 611.699 billion in Apr-Aug. The food subsidy bill was Rs 1.138 trillion, up 37.2% against Apr-Aug a year ago. 

Petroleum subsidy grew almost fivefold from the same period a year ago, but the absolute number remained within the budgeted outlay of Rs 119.250 billion.

The following table details major subsidies in Apr-Aug (in billion rupees):