<h1>Food, fertiliser and fuel subsidies are reduced 4.47% in the FY27 budget, with lower allocations across all three heads.</h1> Union Budget 2026-27 projects a 4.47% reduction in combined food, fertiliser and fuel subsidies to Rs 4,10,495 crore for FY27. Food subsidy is marginally lower at Rs 2,27,629 crore, primarily under PMGKAY supplying free rations to over 81 crore beneficiaries. Fertiliser subsidy is reduced to Rs 1,70,805 crore (Rs 1,16,805 crore for urea; Rs 54,000 crore for non-urea) and petroleum subsidy falls to Rs 12,085 crore, reflecting revised and budget estimates for managing subsidy outlays in the coming fiscal year.