Pending petroleum subsidy held back to make room for PM-Kisan scheme

The year could end with only about Rs 16,400 crore and Rs 4,000 crore being allocated for LPG and kerosene, respectively

The Rs 20,000 crore that the Narendra Modi government has allocated for its newest flagship scheme, PM Kisan, for 2018-19 came at the cost of petroleum subsidy dues of the state-owned oil-marketing companies, Business Standard has learnt.

The budgeted petroleum subsidy estimate for the current fiscal year was Rs 24,933 crore. Sources in multiple ministries said the Centre was seriously considering paying out an extra Rs 20,000 crore to clear all the outstanding subsidy dues of the OMCs and start 2019-20 on a clean slate, without any subsidy carryovers.

"The government was planning to allocate an additional Rs 20,000 crore