Source: LiveMint.com, Dec 17, 2018
New Delhi: The government is likely to account for a significant portion of its subsidy burden for the current fiscal, including ₹20,000 crore on subsidizing fuel, in 2019-20 to meet the fiscal deficit target for the year to 31 March. “We have to shift part of the overall subsidy bill to the next financial year. The petroleum subsidy bill is expected to exceed the budgeted target by ₹20,000 crore due to high crude oil prices and rupee depreciation, which cannot be footed this fiscal year,” a government official said on condition of anonymity.
The Modi government has allocated ₹2.9 trillion for various subsidies in the 2018-19 budget, including ₹24,933 crore for petroleum subsidy, which analysts say is an underestimation considering that fuel subsidies stood at ₹24,460 crore in 2017-18, when average crude oil prices were much lower. Read the rest of this entry »