The transfer of subsidies and incentives to

Solution

  The transfer of subsidies and incentives to beneficiaries through the direct benefit transfer (DBT) scheme has reached Rs 5.14 trillion so far in the current financial year and the payments are expected to surpass Rs 6.3 trillion achieved in FY22 due to a spike in fertilizer subsidies.  Fertilizer subsidies worth Rs 1.66 trillion have been provided to farmers so far in the current financial year, which is 34% higher than Rs 1.23 trillion figure in the whole of FY22.The Centre’s total fertilizer subsidy bill is estimated to be Rs 2.5 trillion for FY23 as against the budget estimate of Rs 1.05 trillion and the actual Rs 1.54 trillion in FY22. Subsidies worth Rs 1.5 trillion were transferred to beneficiaries via foodgrains under the public distribution system (PDS) in FY23. The food DBT through the PDS is likely to end the year around Rs 2.2 trillion, the same as in FY22.