As per the Budget Estimates of expenditure on major subsidies during 2

As per the Budget Estimates of expenditure on major subsidies during 2019-20, the maximum expenditure was likely to be on

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urea subsidy

petroleum subsidy

food subsidy

fertilizer subsidy

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UPSC CDS-2 – 2020

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Based on the Budget Estimates of expenditure on major subsidies for the Union Government in 2019-20, the largest allocation was for Food subsidy.

The Budget Estimates for 2019-20 projected significant expenditures on various subsidies. Among the major categories listed: Food subsidy (~₹1.84 lakh crore), Fertiliser subsidy (~₹0.80 lakh crore), and Petroleum subsidy (~₹0.37 lakh crore). The Food subsidy was clearly the largest among these. Fertiliser subsidy is the total of Urea subsidy and P&K subsidy; Urea subsidy is a component, not the total fertiliser subsidy.

Food subsidy is primarily channelled through the Food Corporation of India (FCI) for procuring, storing, and distributing food grains under schemes like the National Food Security Act. Fertiliser subsidy supports the availability of fertilisers to farmers at subsidised prices. Petroleum subsidy mainly covers LPG and Kerosene. In 2019-20, the allocation for food subsidy was the highest among these categories.

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