Budget 2023 Subsidy Bill : Finance Minister Nirmala Sitharaman will present the budget on 1 February 2023. In such a situation, the discussion about the government’s subsidy bill is intensifying. In fact, subsidy is financial assistance given by the government, which can be given to any person, business or organization. In such a situation, the government will keep an eye on how much provision will be made for subsidy in the financial year 2024. In such a situation, it is necessary to know what is the subsidy bill, what is its purpose and on which things there is provision of subsidy.
What Is Subsidy Bill
Subsidy is the financial assistance given by the government, which is given to an individual, business or organization. Generally, subsidies in India are given keeping in mind the farmers, industries and consumers. It can be direct or indirect. Subsidy figures have a great impact on the expenditure of the government.
Its advantages are that the people of the weaker section get help through subsidy. At the same time, the disadvantage is that sometimes due to some unwanted incidents, the government has to spend more on the subsidy bill than the provision. This has a negative effect on the balance sheet of the government.
What Is The Purpose Of Giving Subsidy
The purpose of subsidy is to reduce the financial burden of the people or to promote a particular service or product. That is, the purpose of any subsidy is usually to promote social or economic policies, so government subsidy should not be seen as just a government expenditure (or loss of revenue).
What Are The Things That Get Subsidy
Subsidy is given by the government on fertilizer, kerosene, LPG cylinder, food items and in some cases interest. Generally food subsidy is major and about 50 percent of the total subsidy given by the government is spent on food subsidy. This expenditure is done on the cheap grains given to the poor. The government’s expenditure on food subsidy has increased significantly in the last 5 years.
Expenditure On Subsidy In The Last 10 Years
FY23: For the financial year 2023, the government had made a provision of spending 3.17 lakh crores on subsidy. Although some reports are claiming that it can be increased ie revised to more than 5 lakh crores.
- FY22: In the financial year 2022, the government’s expenditure on subsidy was 4.33 lakh crores.
- FY21: In the financial year 2022, the government’s expenditure on subsidy was 7.07 lakh crores.
- FY20: In the financial year 2022, the government’s expenditure on subsidy was 5.96 lakh crores.
- FY19: In the financial year 2019, the government’s expenditure on subsidy was 3.39 lakh crores.
- FY18: In the financial year 2018, the government’s expenditure on subsidy was 3.01 lakh crores.
- FY17: In the financial year 2017, the government’s expenditure on subsidy was 2.60 lakh crores.
- FY16 The government’s expenditure on subsidy in the financial year 2016 was 2.31 lakh crores.
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