Poll-bound states splurged heavily on subsidies: RBI

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New Delhi, December 13

Five of the six states that went to the polls recently had earmarked huge amounts for subsidies, according to statistics released by the Reserve Bank of India (RBI).

In 2023-24 with four months left for the full fiscal to get over, Chattisgarh had a Budget allocation of Rs 35,238 crore on subsidies. The state was slightly less profligate in the previous fiscal of 2022-23 when it spent Rs 31,050 crore.

Karnataka had reserved a whopping Rs 45,402 crore on subsidies in 2023-24 as against its actual spending of Rs 30,800 crore on subsidies in 2022-23.

Madhya Pradesh had set aside Rs 27,896 crore in subsidies in 2023-24 as against Rs 31,834 crore in the previous fiscal. Rajasthan had budgeted Rs 25,649 crore in 2023-24 as against Rs 25,579 crore in the previous fiscal while Telangana spent Rs 16,198 crore in 2023-24.

Even without elections, Gujarat and Punjab spend heavily on subsidies. Gujarat was one of the top disbursers of subsidies and allocated Rs 30,000 crore for 2023-24. Last year too, it had spent Rs 25,000 crore on subsidies. Punjab budgeted Rs 20,500 crore on subsidies in 2023-24 and disbursed Rs 20,751 crore in the previous fiscal.