GS3 › Public Finance and the Budget

Revision note: Subsidies, Public Debt and Fiscal Federalism

  • Subsidies justified for merit goods, externalities, redistribution; costly when untargeted
  • Major subsidies: food (NFSA, PMGKAY free since 2023), fertiliser (urea fixed MRP; NBS 2010 for P and K), petroleum (LPG; petrol 2010 and diesel 2014 deregulated)
  • DBT 2013; PAHAL; fertiliser DBT 2018; neem-coated urea 2015; nano urea 2021
  • Debt: general government > 80% of GDP; mostly domestic rupee debt; RBI manages; JP Morgan index inclusion June 2024; green bonds 2023
  • 15th FC share 41% (2021–26); 16th FC (Panagariya) 2026–31; Art 293 borrowing; SASCI 50-year loans
  • SNA-SPARSH just-in-time releases; PFMS
Revision card summarising Subsidies, Public Debt and Fiscal Federalism
One-page visual summary of the key points to revise.

Source: https://upscprep.in/upsc/gs3/public-finance-and-the-budget/subsidies-public-debt-and-fiscal-federalism/ · UPSCPrep.in

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