Data Alert
Apr-May major subsidies outgo up 47% as fertiliser, food spend surges
This story was originally published at 15:16 IST on 1 July 2026
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NEW DELHI – The government's expenditure on major subsidies in the first two months of 2026-27 (Apr-Mar) jumped 47.4% on year as the outgo on fertiliser and food subsidies surged during the period, data from the Controller General of Accounts released Tuesday showed. At INR 755.43 billion, expenditure on major subsidies in Apr-May accounted for 18% of the Budget target of INR 4.105 trillion for FY27.
In the corresponding period a year ago, the government's major subsidies bill accounted for 13% of the FY26 target.
The government's fertiliser subsidy bill was up 52% on year at INR 344.61 billion in Apr-May, as against INR 232.62 billion spent in Apr-May 2025. Food subsidy during the period jumped 50% on year to INR 408 billion. According to economists, the government front-loaded spending during the first two months of FY27 to shield the economy from higher prices in the wake of the West Asia war.
For FY27, the government has pegged expenditure on major subsidies at INR 4.105 trillion, compared with the revised estimate of INR 4.297 trillion for FY26. As per data, the government spent INR 4.539 trillion on subsidies in the last fiscal year, INR 241.20 billion higher than the target.
The following table details major subsidies in Apr-May (in INR billion):
| Apr-May 2026 | Apr-May 2025 | Budget Estimate FY27 | Year-on-year % change | |
| Food | 408 | 279.91 | 2,276.29 | 50 |
| Fertiliser | 344.61 | 232.62 | 1,707.99 | 52 |
| Petroleum | 2.82 | 0 | 120.85 | -- |
| Total | 755.43 | 512.53 | 4,105.13 | 47.4 |
End
Reported by Priyasmita Dutta
Edited by Avishek Dutta
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