Govt mulls rolling over oil subsidy payment of FY19 to 1st quarter of FY20

With the oil subsidy shooting up this fiscal year (2018-19 or FY19), the government is planning to roll over payment of a major chunk of it to the first quarter of the next year (2019-20 or FY20).

By the end of September, the petroleum ministry’s internal calculations showed that the oil subsidy for the year was estimated to cross Rs 460 billion. Initially it was expected to be Rs 250 billion. Now, the government plans to pay about Rs 200 billion in FY20.

The Centre is trying to meet a difficult fiscal deficit target this financial year.

The government usually compensates the companies