RBI Issues Circular On Levying Unfair Interest Charges On Customers

For the financial year 2024-25, an estimated expenditure of Rs 2.05 lakh crore is allocated for food subsidies, which is less than the expenditure of Rs 2.12 lakh crore in the current fiscal year.

Finance Minister Nirmala Sitharaman presented the interim budget for 2024-25 on Thursday, outlining the projected expenditure for food subsidies.

Under the National Food Security Act (NFSA) and other welfare schemes, the government procures food grains, and later sells those under the Public Distribution System (PDS). Food subsidies are provided to bridge the gap between procurement and selling prices.

Additionally, the Finance Minister mentioned that the estimated subsidy for fertilizers in the next fiscal year is Rs 1.64 lakh crore, which is less than the current fiscal year’s expenditure of Rs 1.89 lakh crore.

The government provides subsidies to fertilizer companies. The maximum retail price (MRP) of urea, sold in the market, is determined by the government. Subsidies are provided based on the difference between selling price and the cost of production. Subsidies are also being provided for non-urea fertilizers like DAP and MOP based on nutrient content.