Question

Q. Arrange the following in the decreasing order of the expenditure on Subsidies according to Budget 2021-22.

Select the correct answer using the code given below:

• A. 4-3-1-2
• B. 4-3-2-1
• C. 2-4-3-1
• D. 2-3-4-1

Answer 1

The correct option is D 2-3-4-1

Explanation:

• In 2021-22, the total expenditure on subsidies is estimated to be Rs 3,69,899 crore, an annual increase of 19% over 2019-20. This is largely due to a higher allocation to food subsidies.
• Allocation to food subsidy is estimated at Rs 2,42,836 crore in 2021-22. Expenditure on fertilizer subsidy is estimated at Rs 79,530 crore in 2021-22.
• Petroleum subsidy consists of subsidies on LPG and kerosene. The allocation in 2021-22 is 64% lower than the 2020-21 revised estimate at Rs 14,073 crore.
• The government also provides certain other subsidies such as interest subsidies on loans given under various government schemes and subsidies for procurement of agricultural products other than paddy and wheat. In 2021-22, the expenditure on these other subsidies is estimated to be Rs 33,460 crore