Budget 2022: FY23 may see lower outgo on food subsidies

The government is unlikely to extend the distribution of free food grains beyond March 2022.

Updated Jan 31, 2022 3:44 PM IST

Budget 2022: FY23 may see lower outgo on food subsidies

Sources also added that export incentive schemes like Rebate of State & Central Taxes and Levies (RoSCTL), Remission of Duties and Taxes on Export Products (RODTEP) may also see an extension

The food subsidy Budget estimate for the next fiscal is likely to be around Rs 2.5 lakh crore, according to sources.

In the current fiscal, the subsidy bill is estimated at around Rs 2.25 lakh crore for procurement and distribution of foodgrains under the National Food Security Act (NFSA), and an additional Rs 1.47 lakh crore has been incurred for implementing the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) taking the food subsidy bill for food at over Rs 3.72 lakh crore.

Sources added that the distribution of free food grains during the pandemic to NFSA beneficiaries under the PMGKAY, which was extended till March 2022, is unlikely to be extended further. PMGKAY, India's food subsidy will be pegged at Rs 2.5 lakh crore for the financial year 2022-23, according to sources.

During 2020-21 fiscal, the government food subsidy stood at Rs 5.29 lakh crore. The Budget is likely to announce a Rs 15,000 crore scheme for the textile sector. Sources said the scheme will focus on giving a boost to textile manufacturing and technology upgradation. The scheme will be for five years and the government will prepare a roadmap to boost the sector.

Sources also added that export incentive schemes like Rebate of State & Central Taxes and Levies (RoSCTL), Remission of Duties and Taxes on Export Products (RODTEP) may also see an extension. The Ministry of Textiles notified the introduction of RoSCTL in March 2019. The benefits of RoSCTL are available to exporters of readymade garments and made-ups for now.

The scheme aims to help them cut high logistics and other costs and enable them to compete globally. Applicable from January 1, 2021, the RODTEP scheme was formed to replace the existing Merchandise Exports from India scheme. The scheme will ensure that the exporters receive refunds on the embedded taxes and duties previously non-recoverable.

Also read: Economic Survey 2021-22: Govt projects 8-8.5% growth in FY23

Also read: Economic Survey 2022: Air India sale will boost privatisation drive, says Govt

ABOUT THE AUTHOR

Chetan Bhutani

Chetan Bhutani is a New Delhi-based economic policy journalist with ten years of experience in reporting and breaking stories about economic policy pertaining to India's infrastructure and financial sector, including highways, finance, railways, shipping, telecom, petroleum, and natural gas and currently works as an Associate Editor for Business Today TV. He is a journalist who works across multiple platforms and languages and offers in-depth coverage of the auto industry, regulations, new products, and reviews. Also, he has extensively reported about the actions taken by investigative authorities in relation to corporate and bank frauds as well as significant insolvency cases. Bhutani keeps a tight eye on all aspects of the government's public policies, from their creation to their implementation. In addition to his job, Chetan enjoys scheduling official appointments, travelling, going on road trips, playing cricket, and squash. Also, he is passionate about addressing climate change and road safety. He is a public policy enthusiast and has a master's degree in Public Administration.

Published on: Jan 31, 2022 3:44 PM IST

Budget 2022: FY23 may see lower outgo on food subsidies

The government is unlikely to extend the distribution of free food grains beyond March 2022.

ABOUT THE AUTHOR

TOP STORIES

TOP VIDEOS

LATEST