Food, fertiliser bills push govt subsidy up three times in FY21

The government spent Rs 5.3 trillion in food subsidies during the pandemic-hit last year--over five-fold increase over 2019-20 when it spent Rs 1.08 trillion

The Union government overshot its expenditure on subsidies in 2020-21 by 11 per cent despite paying less on account of petroleum and fertiliser subsidies. In 2019-20, it had managed to keep its subsidy at 98 per cent of the revised estimates for the year.

The increase in total subsidy outgo was primarily because it paid more on account of food subsidy which overshot the estimates by 24 per cent or Rs 1 trillion. The government spent Rs 5.3 trillion in food subsidies during the pandemic hit last year which was more than fivefold increase over 2019-20 when it spent Rs