"A significant proportion of subsidies on fertilizer was a key component of the fiscal statement of the Central Government for year 2023-24." Identify the nature of government expenditure and its objective.

Question

Accepted Answer

Fertilizer subsidy analysis:

Nature of government expenditure:
1. Revenue Expenditure
2. Subsidy payment
3. Does not create assets
4. Recurring in nature
5. Transfer payment

Objective:
1. Support agricultural growth
2. Ensure food security
3. Help farmers with input costs
4. Maintain agricultural productivity
5. Keep food prices affordable

Fertilizer subsidy is a significant component of government expenditure aimed at supporting agriculture and ensuring food security in India.