Food and fertiliser subsidies alone account for aboutone-eighth of Indias total budgetary spendingof 39.45 trillion this fiscal year, but reducing these subsidies could be politically sensitive given theimpending elections.

The government anticipates allocating roughly 2.3 trillion for food subsidies in the upcoming fiscal year as opposed to 2.7 trillion for the year that has just ended on March 31.

The amount spent on fertiliser subsidies will probably decrease to roughly 1.4 trillion in contrasts to 2.3 trillion this year.