Food subsidy to be hiked by 20% to Rs 2.21 lakh crore.

Food subsidy may be increased 20 per cent in the budget, likely in July, after it was stepped up to Rs 1.84 lakh crore for the current financial year in the interim budget, presented on February 1, on account of the Food Corporation of India's (FCI) allocations under the National Food Security Act and the sum granted for decentralised grain procurement taking the amount to over Rs 2.21 lakh crore.

 

A 20 per cent rise will add over Rs 36,000 crore to the subsidy bill, currently pegged at Rs 1.84 lakh crore, and take the total to Rs 2.21 lakh crore. In the 2018-19, the subsidy was Rs 1.71 lakh crore.