A STUDY ON THE ASSESSMENT OF THE TREND, COMPOSITION AND REASONS OF INCREASE IN FERTILISER SUBSIDY

In the Indian context budgetary subsidy has seen a huge influx over the recent years. In the current paper this trend will be further analyzed and the reasons of the increase of the fertilizer subsidy will be discussed. The investigations into the field have suggested that the subsidies of the fertilizers have grown at a sharp rate till the year 2008. Soon after this point the rate has declined at a considerable rate. Nevertheless it is still one of the major parts of the subsidies that are provided in India. The paper has suggested that a national Policy for targeting subsidies must be formed. At the end of the thesis certain recommendations have been made so that the fiscal discipline can be benefited. The subsidies must be rationalized and the subsidies must be provided to the financially weaker segments of the society. This can be done by providing the subsidies directly to the bank accounts of these people under the guidelines of the Direct Benefit Scheme (DBS).