The subsidy bill of the Central Government has remained in the range of ₹ 2.50 lakh crore to ₹ 2.58 lakh crore during the period, 2014-15 to 2016-17 (Budget Estimates). The fiscal deficit of the Central Government, which is the difference between total expenditure and non-debt receipts, has been in the range of ₹ 5.11 lakh crore to ₹ 5.35 lakh crore in this period. As proportion of GDP, both subsidy bill and fiscal deficit declined during this period.

Details of subsidies given under different heads are in table below:

Details of Subsidies (Rs. in crore)

Subsidy	2012-13	2013-14	2014-15	2015-16 RE
Food	85000	92000	117671	139419
Fertilizer	65613	67339	71076	72438
Petroleum	96880	85378	60269	30000
Other	9586	9915	9242	15944
Total	257079	254632	258258	257801
RE=Revised Estimates

Direct Benefit Transfer (DBT) was started in 1.1.2013 and expanded across all Central Sector/Centrally Sponsored Schemes involving cash transfers to individual beneficiaries in February 2015. In cash transfer, the benefit is transferred in the beneficiary’s account, preferably Aadhaar seeded. Presently, LPG subsidy is transferred directly in to the bank accounts of beneficiaries. Food subsidy in cash is disbursed in wo Union Territories viz, Puducherry and Chandigarh, directly in beneficiaries’ bank accounts, in kind, after biometric authentication, in 70000 fair price shops at present. The Union Budget 2016-17 has indicated the introduction of DBT on pilot basis for fertilizer in a few districts across the country. Hence, it is difficult to indicate a timeframe for completing the shift to the system of cash transfer.

This was stated by Shri Jayant Sinha, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha.

Direct Benefit Transfer expands subsidy delivery to bank accounts and Aadhaar-seeded payments, with pilot moves for fertilizer. Central subsidies showed category shifts-rising food and other subsidies, declining petroleum subsidy, stable fertilizer outlays-with total subsidy and fiscal deficit declining as GDP proportions. The Government is shifting delivery toward a Direct Benefit Transfer (DBT) model: LPG subsidy is paid into beneficiaries' bank accounts, food cash transfers operate in select territories and biometric fair price shops, and a pilot DBT for fertilizer is proposed, though no nationwide timetable is fixed.