FY27 Budget: Food, Fertiliser, Fuel Subsidies to Drop by 4.47%

• The government projects a 4.47% reduction in annual subsidy expenses for food, fertiliser, and fuel in FY27, totaling Rs 4,10,495 crore.
• The revised estimate for the current FY26 is Rs 4,29,735 crore for these subsidies.
• Food subsidy is estimated at Rs 2,27,629 crore for FY27, slightly lower than the FY26 revised estimate of Rs 2,28,154 crore.
• A significant portion of the food subsidy goes to the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), benefiting over 81 crore people.
• Fertiliser subsidy is projected to decrease to Rs 1,70,805 crore in FY27 from Rs 1,86,460 crore in FY26, with petroleum subsidy also falling to Rs 12,085 crore.

Why It Matters: Government plans to reduce food, fertiliser, and fuel subsidies by 4.47% in the FY27 budget.