Govt pegs FY13 subsidy bill 14% lower than current fiscal

The government has pegged its outgo on food, fuel and fertiliser subsidies in the 2012-13 fiscal at over Rs1.79 lakh crore, nearly 14% lower than the revised estimates for the current fiscal.

According to the Budget proposals, the government's subsidy bill on food, petroleum and fertilisers is estimated at Rs1,79,554 crore for the 2012-13 fiscal as against Rs2,08,503 crore in the revised estimates for this fiscal.

Interestingly, the revised estimate for this fiscal is higher by 55 per cent compared to the budget estimate of nearly Rs1,34,211 crore.

The oil subsidy, which is given to state-run oil marketing firms, such as Indian Oil Corp, BPCL and HPCL, for selling diesel, domestic LPG to households and kerosene through the PDS system, below cost, is estimated lower at Rs43,580 crore in FY'13, compared to Rs68,481 crore in this fiscal.

The government's food subsidy given to run the public distribution system is estimated to rise marginally to Rs75,000 crore next fiscal from Rs72,823 crore in 2011-12.

Food subsidy is provided to meet the difference between the economic cost of foodgrains and their sales realisation at the Central Issue Price fixed under the public distribution system (PDS) and other welfare schemes.

The fertiliser subsidy is also pegged lower at Rs60,974 crore in the next fiscal, as against Rs6,199 crore in the current fiscal.

Under the fertiliser subsidy, the government would provide Rs13,398 crore for imported urea, Rs19,000 crore for indigenous (urea) fertilisers, and Rs28,576 crore for the sale of decontrolled fertilisers (DAP, MOP and complexes) at a subsidised rate to farmers.