Budget 2024: Centre makes no announcement on FY25 food subsidy bill under Modi 3.0

Union Finance Minister Nirmala Sitharaman made no announcement regarding food subsidy bill allocation in the full Budget presented on July 23. The government was expected to announce a hike in the food subsidy bill ahead of the assembly elections this year.

Food and fertiliser subsidies in the Interim budget accounted for about 8% of India's total spending of Rs 47.66 trillion during the fiscal year that ends on March 31, 2025. The country's combined food and fertiliser bill is expected to reach Rs 3.88 lakh crore, up 5% rise from the estimate in the interim budget unveiled before the election.

Food and fertiliser subsidies in the interim budget accounted for about 8% of India's total spending of Rs 47.66 lakh crore during the fiscal year that ends on March 31, 2025.

In the Interim budget, the food subsidy bill was estimated at Rs 2.05 lakh crore. The increase is largely due to a rise in the price at which the government buys rice and wheat from domestic farmers.

The entire food subsidy bill is set to be spent on the Pradhan Mantri Garib Kalyan Anna Yojana, which was extended by five years by the Union Cabinet in November 2023 at a total cost of nearly Rs 12 lakh crore.