Over 73 Percent of Agriculture Budget Goes Towards Welfare Measures, Subsidies

Food and fertilizer subsidies account for more than 50 percent of the Union Budget for the rural and agrarian sector in FY 25. The budget for the rural-agrarian sector is heavily skewed towards welfare measures, with food, fertilizer and MGNREGS accounting for Rs. 4.55 trillion or 9 percent of the total budget expenditure. This transformation requires a strategic shift in policymaking, focusing on sustainable farming practices that benifit both farmers and the environment.

Out of this, the food subsidy allocation accounts for 30 percent of the entire agrarian budget, amounting to Rs. 2,05,250 crores. The fertilizer subsidy accounts for 24 percent of the agriculture budget with an allocation of Rs. 1,64,000 crores. The total expenditure for the rural-agrarian sector is approximately Rs 6.2 trilion, which constitutes 13 percent of the overall budget of Rs 48.2 trillion in FY25.

Presentation- Dibyabharati Nayak