States' subsidy spend may remain flat in FY27
Executive Brief • Key Highlights
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- ✓Aggregate subsidy spending by 20 major states is estimated at Rs 5.39 lakh crore in FY27, only marginally higher than the Rs 5.31 lakh crore spent in FY26.
- ✓While Karnataka remains the biggest spender, Maharashtra and Tamil Nadu planned sharp cuts.
- ✓Meanwhile, Uttar Pradesh and Rajasthan increased their subsidy budgets.
Story at a Glance
- Category
- BUSINESS
- Reported By
- Financial Express
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
Aggregate subsidy expenditure by 20 major states is estimated at Rs 5.39 lakh crore in FY27, only marginally higher than the Rs 5.31 lakh crore spent in FY26. Over Rs 4.94 lakh crore was spent on this front in FY25.
The near-flat aggregate, however, masks substantial shifts in spending across states.
Karnataka remains the biggest spender, with its subsidy and financial assistance outlay projected to rise 9% to Rs 1.03 lakh crore in FY27. Tamil Nadu, the second-largest spender in FY26, has budgeted a 15.7% reduction to Rs 61,097 crore.
Maharashtra has planned an even sharper 19.1% cut to Rs 54,094 crore, down from Rs 66,882 crore in FY26, accounting for a substantial part of the restraint among larger spenders.
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Financial Express
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