Budget 2024: India likely to allocate $48 billion for food, fertiliser subsidies

Ahead of the 2024 Lok Sabha elections, India is considering allocating around 4 trillion rupees ($48 billion) for food and fertilizer subsidies in the next fiscal year, signaling fiscal prudence. \r

The Ministry of Consumer Affairs, Food and Public Distribution projects a 10% increase in food subsidies to 2.2 trillion rupees ($26.52 billion) for 2024, while fertilizer subsidies may decrease to 1.75 trillion rupees ($21.10 billion). Prime Minister Narendra Modi's anticipated third term places emphasis on managing fiscal deficit, targeted at 5.9% of GDP this year, with a plan to reduce it by at least 50 basis points in 2024-25. \r

Despite extending welfare programs, containing subsidies is crucial, given the government's fiscal goals and electoral dynamics.