Follow us on   Twitter   Facebook   Explore Trade Now Feedback
Budget 2013 »Economic Survey»Economic Survey Details
Economic Survey Details

Subsidy bill for FY13 to surpass Budget estimate

BS Reporter / New Delhi 28 Feb 13 | 12:30 AM
173 Replies

With the subsidy bill for the financial year 2012-13 set to exceed the Budget allocation of Rs 1.9 lakh crore, the government plans to focus on better targeting and plugging leakage, according to the Economic Survey.

At the same time, it says, "Priority needs to be accorded to food subsidy, in view of the under-consumption of basic food by the poor and the extent of malnutrition."

On this leading to a higher subsidy outgo, the Survey says this is a part of the challenge of prioritisation, to provide for this basic need while controlling other items of spending. It said the food subsidy has been growing at an average annual rate of 25.4 per cent in the past five years, of which the bulk goes to the Targeted Public Distribution System.

The Survey clearly indicates fiscal consolidation will be on the back of reduced petroleum subsidies. "The domestic prices of petroleum products, particularly diesel and liquefied petroleum gas (cooking gas) need to be raised in line with the prices in international markets," it said. It said a little over 92 per cent of the Budget estimate of the subsidy bill was spent by December (with three months still to go in the financial year).

To check the rising subsidy burden, the government had allowed the raising of diesel prices by Rs 5 a litre and capped the number of subsidised cooking gas cylinders at six a household in a year, in September 2012.

Further, last month, it allowed oil marketing companies to henceforth raise diesel prices in small measures periodically. However, to protect household budgets, it simultaneously raised the annual LPG cap from six to nine cylinders.

But with international crude oil prices averaging $107.52 a barrel in the first three quarters, the payout to check the domestic retail price of automobile and cooking fuels, and fertilisers, will see a substantial rise.

"While the Budget for 2011-12 had estimated total expenditure to be contained at 14 per cent of GDP, there was an overshooting on account of the high global oil prices and the insufficient pass-through to domestic oil and fertiliser prices," said the Survey.

The government has pegged the oil subsidy at Rs 43,580 crore, food subsidy at Rs 75,000 crore and fertiliser subsidy at Rs 60,974 crore.

173 Replies


    01 Nov 21 at 10:53 AM
By: Exipure Reviews

When you are looking for things to flavor your foods, consider salsa, hot sauce, mustard, and salt-free seasonings. This will cut down on the amount of butter, cheese, gravies, and cream-laden sauces you put into you body. They will also perk up your senses and keep your food interesting.

    28 Oct 21 at 05:22 PM
By: Online Casino Experten

Unsere Online Casino Deuschland Experten helfen Ihnen, das am besten geeignete Online Casino zu finden. Unsere erfahrenen Mitarbeiter helfen Ihnen gerne weiter.

    21 Oct 21 at 03:27 PM
By: Java Burn Reviews

Deciding to run a marathon is a sure way to lose weight. You will need to train for at least 6 months, and that alone will help you by burning calories through exercise on a regular schedule.

    20 Oct 21 at 10:55 AM
By: Java Burn Ingredients

Feeling stout? Many of us have a moment when we realize that our clothes feel tighter than they used to. What can you do about it? Take charge of your body and start losing weight. This can be a challenge, but here are some great ways to get your body slimmed down.

    20 Oct 21 at 10:54 AM
By: Java Burn Coffee Drink

Like many long-term endeavors, losing weight is a game of inches. Little steps can have big results, and incorporating a bit of fresh advice can make your weight loss efforts more effective. Variety and novelty will keep your weight-loss program on-track. If the tips above look useful to you, do not hesitate to make use of them.

    20 Oct 21 at 10:53 AM
By: Java Burn Real Reviews

You can lose weight and boost heart health with beans. They contain high levels of protein and fiber, and you can prepare them in a wide variety of ways. You can make some hummus with garbanzo beans, or you can fix up some chili or bean salad. They can also be a flavorful addition when making burgers. It's quite tasty to put some lentils on sandwiches or salads.

    20 Oct 21 at 10:53 AM
By: Java Burn Reviews

Cut the fat off your meat to have a high protein meal without the weight gain. That includes skin, which should be removed prior to cooking if possible so the fat doesn't soak into the meat. If you want to buy meat with skin on to save money, that's fine as long as you remove the skin!

    03 Jun 21 at 03:03 AM
By: Online casino Deutschland

If you're looking for expert online casino advice in Germany? Online casino spielautomaten can help you out.

    14 Apr 21 at 08:00 PM
By: Top Sleeping Expert

best australian mattress

    07 Apr 21 at 04:12 PM
By: PerfectAmino Reviews

Staying fit is the key to looking better, feeling better, and living longer. As you consider the powerful suggestions in the article above, you will realize that it is not as difficult as you thought to start on the road to being fit. You now have what you need to make fitness a part of your life.

1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | | Next

Leave a reply

Email: * 
Comment: *
(Max. 1000 characters)
Word Verification: * 
Quick Jump

Budget Glossary

  • Appropriation Bill: It is presented to Parliament for its approval, so that the government can withdraw from the Consolidated Fund the amounts required for meeting the expenditure charged on the Consolidated Fund. No amount can be withdrawn from the Consolidated Fund till the Appropriation Bill is voted is enacted.

Budget Trivia

  • Pranab Mukherjee's first Budget in 1982 included one provision that set the stage for India Inc's most celebrated takeover battle.
Widgets Magazine