homeeconomy NewsGovt may shift part of subsidy burden for current fiscal to next year, says report

Govt may shift part of subsidy burden for current fiscal to next year, says report

The centre may account for a significant portion of its subsidy burden for the current financial year, including Rs 20,000 crore on subsidising fuel, in 2019-20 to meet the fiscal deficit target for the year ending March 31, Mint reported.

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By CNBC-TV18 Dec 17, 2018 8:53:30 AM IST (Published)

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Govt may shift part of subsidy burden for current fiscal to next year, says report
The centre may account for a significant portion of its subsidy burden for the current financial year, including Rs 20,000 crore on subsidising fuel, in 2019-20 to meet the fiscal deficit target for the year ending March 31, Mint reported.

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"We have to shift part of overall subsidy bill to the next financial year. The petroleum subsidy bill is expected to exceed the budgeted target by Rs 20,000 crore due to high crude oil prices and rupee depreciation, which can not be footed this fiscal year," a government official told Mint  on condition of anonymity.
The Modi government allotted more than Rs 2 lakh crore for various subsidies in the Budget, including the Rs 24,933 crore for petroleum subsidy.
Finance Minister Arun Jaitley has expressed confidence in meeting the fiscal deficit target without cutting capex, however, recent electoral losses for the ruling Bharatiya Janata Party in assembly polls are expected to put additional pressure on the government to opt for populist measures, said the report.
 
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