According to sources, the government may be looking at a longer-term subsidy sharing formula for FY16 along with probable actions in terms of Q4 payments.
According to sources, the government may be looking at a longer-term subsidy sharing formula for FY16 along with probable actions in terms of Q4 payments. The Finance Ministry closes accounts by December end and the Q4 is always rolled over into Q1 of the new fiscal.
Thus, it seems that at least part of the requirement will be paid out. However, it remains to be seen what could be the amount -- it could be in the range of Rs 4,000-8,000 crore if required or could be on the lower side and will be as per the separate allocation for Liquefied Petroleum Gas (LPG) and kerosene subsidies for FY16.
Thus, it is needless to say that the money will go from the FY16 Budget and if that happens then also the overall Rs 30,000 crore figure that the government has kept for FY16 as LPG, kerosene subsidy outlay, could also come under pressure at a later stage.
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