Free food grain scheme extension: Choice between welfare and rising subsidy

After the Garib Kalyan Yojana was extended by five months from July To November, an additional subsidy of Rs 76,000 crore had to be borne by the govt

A few weeks back, the Centre announced an additional allocation of Rs 65,000 crore towards fertiliser subsidy for the 2020-21 financial year, over and above the existing Rs 71,309 crore for 2020-21 Budget Estimates.

This extra outlay, if released as promised, would be good enough to clear all existing and pending fertiliser subsidy dues which are projected to be Rs 1.28-1.33 trillion for 2020-21. In other words, the total outlay would work out to Rs 1.36 trillion (Rs 71,309 crore existing subsidy plus additional outlay of Rs 65,000 crore), which will be good enough to ensure that the fertiliser industry