NEW DELHI: Responding to Opposition’s criticism that the Centre reduced subsidies for fertilizer and food in the Budget, Finance Minister Nirmala Sitharman said the expenditure on both the subsidies has increased and the government didn’t cut on welfare schemes to maintain fiscal consolidation.
“From 2015-16 to 2019-20, food subsidies have been in the range of Rs 1-1.2 lakh crore, whereas in the budget for 2023-24, the projection for food subsidy is Rs 1.97 lakh crore. So, it is double what was given in 2019-20,” Sitharaman said in the Lok Sabha while discussing the Union Budget 2023-24. She stated that the provision for food subsidy is adequate to cover all the anticipated expenditure for the previous operations, so that is not even less.
“The increase in the subsidy in the last two years was due to the increase in Pradhan Mantri Garib Kalyan Ann Yojana to 80 crore people. In the December allocation of PM Garib Kalyan Yojana, the government will bear all the costs of the previous operation with no cost to the beneficiary or even to the state governments. So, there is no reduction in the subsidy. It’s completely wrong to say that the centre cut on food subsidies to maintain the fiscal consolidation,” she added.
Similarly, with respect to fertilizer subsidy, Sitharaman said, from 2015-16 to 2020, it was in the range of Rs 65,000-Rs 80,000 crore and in 2022-23, provision was made for Rs 1.05 lakh crore but it has been raised to Rs 2.25 lakh crore for FY23 because of the rise in international prices.
The FM also allayed the concerns that the government is cutting down on the allocation of rural employment guarantee scheme MNREGA. She said the government will provide for higher funds if needed. Meanwhile, the Minister also denied the allegations that the government made budget allocations for green and clean energy, keeping Adani Group in mind. The government has provided Rs 35,000 crore for clean energy transition in the Budget 2023-24.
Budget Buzz
FM allays concerns over cutting down on allocation for MNREGA
She says govt will provide for higher funds if needed
Sitharaman says new tax regime will leave more income in the hands of consumers
Higher capital spending will revive economy as it has greater multiplier effect, she says