After hiking fertiliser, Centre may now review food subsidy outlay

Of the Rs 1.15 trillion budgeted as food subsidy for the fiscal year, Rs 1.05 trillion was spent by October

After hiking fertiliser subsidy, the Centre may have to take a relook at the food subsidy outlay, with 91 per cent of the allocation already achieved in the first seven months of the current fiscal year. This might have prompted it to not extend the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY)) (free foodgrains scheme). 

Extending the free foodgrains scheme, would have added on to government's spending pressure amid bleak revenue outlook and higher capital expenditure going forward. 

While the free food grain distribution scheme under the PMGKAY ended on Monday, economists say a large part of it was not accounted for