India's budget likely to raise major subsidies by 8 percent: Report

Higher rice purchases from farmers and rising storage costs are expected to push up the food subsidy next year, Reuters report said.

Image used for representational purposes only (Photo | M K Ashok Kumar, EPS)

India is likely to raise spending on food, fertiliser, and cooking gas subsidies to 4.1 trillion rupees ($47.41 billion) in the next fiscal year, a moderate 8 percent year-on-year increase to cover higher food and energy costs, Reuters quoting "government sources" said.

The budgeted outlay for food subsidies in the current financial year ending March 31 is 2.05 trillion rupees ($23.70 billion).

The government has estimated its food subsidy bill to increase by about 5 percent for the next fiscal year that starts April 1 to nearly 2.15 trillion rupees.

Higher rice purchases from farmers and rising storage costs are expected to push up the food subsidy next year, Reuters report said.

Indian Finance Minister Nirmala Sitharaman will present the annual budget on Feb 1, amid slowing growth in Asia's third-largest economy and rising global uncertainties, Reuters added.