Data Alert
Apr-Aug major subsidy outgo up 24% on high food, fertiliser bill
This story was originally published at 17:25 IST on 30 September 2026
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NEW DELHI – The government's expenditure on major subsidies in the first five months of 2026-27 (Apr-Mar) rose 24.4% on year, driven by a steady rise in food and fertiliser subsidy outgo, according to data released by the Controller General of Accounts. Spending on petroleum subsidy, meanwhile, fell during the period.
At INR 1.870 trillion, expenditure on major subsidies in Apr-Aug accounted for almost 46% of the Budget estimate of INR 4.105 trillion for FY27. The government's major subsidies expenditure had accounted for 39% of the FY26 target in the corresponding period a year ago.
The government's food subsidy during the period rose 29.7% on year to INR 835.10 billion and the fertiliser subsidy bill rose 20.7% on year to INR 1.031 trillion in Apr-Aug. Petroleum subsidy fell 23.2% on year to INR 3.88 billion during the period.
For FY27, the government has pegged expenditure on major subsidies at INR 4.105 trillion, down from INR 4.539 trillion in the last fiscal year.
The following table details major subsidies in Apr-Aug (in INR billion):
| Apr-Aug 2026
| Apr-Aug 2025
| Budget Estimate FY27 | Year-on-Year Change (in%) |
Food | 835.10 | 644.08 | 2,276.29 | 29.65 |
Fertiliser | 1,031.39 | 854.63 | 1,707.99 | 20.68 |
Petroleum | 3.88 | 5.06 | 120.85 | -23.22 |
Total | 1,870.37 | 1,503.77 | 4,105.13 | 24.38 |
End
Reported by Radhika Tiwari
Edited by Avishek Dutta
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