To meet the rising market price and intention of keeping the prices down for the general public i.e. aam aadmi; this year the subsidy bill for the union government will be much higher than previous years.
Various amount of subsidies on food, fertilizers for farmers and kitchen fuel will be higher by 15% to Rs. 2.64 lakh crore for the year 2018-19, which was Rs. 2.29 lakh crore at the revised estimate for the year 2017-18.
It is worth to be noted that approximately 80 crore people are having the support of highly subsidized foodgrains under the National Food Security Act, while subsidy on petroleum products will go up from current level of Rs. 24,460 crore to Rs. 24,933 crore for the fiscal year 2018-19.
In addition to these, the LPG subsidy allocation has already been raised to Rs. 20,378 crore due to Ujjwala scheme, growing consumer base and most importantly higher level of oil price throughout the year 2018.