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A Study In Subsidies

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India’s federal subsidy bill (as reflected in provision in the Central Budget) is approximately 2.2% of GDP, or Rs 143,867 crore ($32 bn) for 2009-10. This figure does not include all the petroleum subsidies that are accounted for differently and outside of the Government’s Budget document. We looked at how some subsidy figures were changing over the years. Interestingly, some of the biggest jumps in subsidy payouts have happened in recent years, regardless of type.


Note how Railway subsidies are going up, considering the Indian Railways was recently considered a self-financing organisation and a turnaround story. Interest subsidy is the only area where the figure is down for 2009-10 but projected at a higher Rs 4,416 crore for 2010-11.


Dredge Report


There is a Jute subsidy too, of Rs 30 crore, in case you thought the industry does not exist any more. And Calcutta Port Trust took in Rs 401 crore in 2008-09 for river dredging. Why this is a separate subsidy will be a mystery, till we dredge further, if we do. Here’s a look at some subsidy heads in (Rs Crore).


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