India’s expenditure on food and fertiliser subsidies is set to reach 3.88 trillion rupees in the 2024 budget. This marks a 5% increase from the interim budget announced by Finance Minister Nirmala Sitharaman before this year’s parliamentary elections.
The country is expected to allocate 2.25 trillion rupees ($11.97 billion) for food subsidies, according to four government sources. This figure is approximately 11% higher than the February interim budget estimate, driven by increased spending on support prices for farmers.
Prime Minister Narendra Modi’s government will present a new budget on July 23, replacing the interim estimates. In the interim budget, food and fertiliser subsidies made up about 8% of India’s total spending of 47.66 trillion rupees for the fiscal year ending March 31, 2025.
The food subsidy bill in the interim budget was initially estimated at 2.05 trillion rupees. The increase is primarily due to higher prices paid by the government for rice and wheat from domestic farmers. The fertiliser subsidy is likely to remain at the previously estimated 1.64 trillion rupees, according to Reuters sources.
Can Budget 2024 Solve India’s Housing Crisis?
India’s housing sector faces severe affordability and accessibility issues, leaving millions without adequate shelter. The upcoming Budget 2024 has raised hopes for a comprehensive solution to provide housing for both urban and rural populations.
Will Budget 2024 address India’s persistent housing problem? The government is under pressure to offer affordable housing, increase funding for projects, and simplify regulations. Finance Minister Nirmala Sitharaman is expected to announce the construction of an additional 20 million houses for the rural poor over the next five years.
The government has so far built 25.5 million of the 29.5 million affordable houses under the Pradhan Mantri Awaas Yojana-Gramin (PMAY-G). Sitharaman highlighted the progress of PMAY-G, even amid the Covid-19 pandemic. The target is close to being met, with 30 million houses expected by 2024. To meet growing demand, an additional 20 million houses will be constructed over the next five years.
Most new houses will be in Uttar Pradesh, Bihar, Jharkhand, Madhya Pradesh, and Rajasthan. These houses will have cooking gas and electricity connections under the Saubhagya and Ujjwala schemes. Last year, the allocation for PMAY-G increased by 66% to over ₹79,000 crore.
The PMAY-U mission, launched in 2015, aims to provide housing for all urban areas by 2022. It offers central assistance for housing projects across states and union territories. In nine years, PMAY-U has transformed millions of lives, turning the dream of owning a house into reality.
(With inputs from agencies)
