Prime Minister Narendra Modi has allowed his subsidy bill to balloon in the lead up to crucial elections, at the risk of breaching his budget deficit goals.
Although Modi has a reputation for reducing India’s huge subsidy expenditure, data shows he’s missed the chance to rein it in. And as he prepares for state and national elections, subsidy reforms -- a sensitive issue among much of India’s vast electorate -- will be even more difficult in Asia’s No. 3 economy.
India’s food subsidies in the financial year starting April 1 have almost doubled from five years ago, the decline in