The government's expenditure on major subsidies in the current financial year has decreased compared to the previous year, according to information provided by the Controller General of Accounts. In the period from April to August, the government spent Rs 1.786 trillion on subsidies in 2024, a slight decline from the Rs 1.807 trillion spent in the same period the year before. This reduction in expenditure represented 47% of the Budget estimate of Rs 3.812 trillion for the fiscal year 2024-25, down from 48% in the corresponding period of the previous financial year.
The notable decrease in expenditure can be largely attributed to a sharp decline in fertiliser subsidies, which dropped by 37% year-on-year to Rs 611.699 billion in the Apr-Aug period. In contrast, the food subsidy bill increased by 37.2% to Rs 1.138 trillion compared to the same period a year ago. While the petroleum subsidy saw a nearly fivefold increase from the previous year, the actual amount remained within the budgeted outlay of Rs 119.250 billion. This data indicates a strategic approach by the government to manage subsidy expenditure in line with budgetary allocations.