Fertiliser subsidy India 2025 received a major push after the Rajya Sabha on Tuesday, December 16, 2025, approved the first batch of Supplementary Demands for Grants, allowing additional government spending of ₹41,455 crore in the current fiscal year.
More than ₹18,000 crore has been allocated specifically for the fertiliser subsidy, driven by higher urea consumption following a good monsoon and increased demand from farmers.
Rising Urea Demand Behind Fertiliser Subsidy India 2025 Allocation
Replying to the debate, Minister of State for Finance Pankaj Chaudhary said fertiliser usage—particularly urea—has increased significantly across the country.
He assured that there is no fertiliser shortage in India. The government has also stepped up domestic production.
“Urea production is being increased by nearly one lakh tonnes every month,” the minister said.
The rise in consumption is a key reason behind the enhanced fertiliser subsidy India 2025 allocation.
Gross Additional Expenditure at ₹1.32 Lakh Crore
The Supplementary Demands for Grants involve a gross additional expenditure of ₹1.32 lakh crore. However, this includes ₹90,812.17 crore in savings across ministries and departments, reducing the net fiscal impact.
Other key allocations include:
₹9,500 crore for the Petroleum Ministry to compensate oil marketing companies
₹1,304 crore for additional spending by the Department of Higher Education
Fiscal Deficit Target at 4.4% for FY26
The government reiterated its commitment to fiscal discipline. Pankaj Chaudhary said the fiscal deficit has been steadily reduced from 9.2% in 2020-21 to a target of 4.4% in 2025-26.
He added that State allocations have increased during the current government’s tenure.
Opposition Flags Fund Release Issues to States
Opposition MPs questioned fund releases to States. Congress leader G.C. Chandrashekhar said States were unable to fully implement central schemes due to delayed disbursement, despite higher overall allocations.
AAP Pushes for Asset Tokenisation Law
AAP MP Raghav Chadha urged the government to introduce a Tokenisation Bill, calling asset tokenisation a transformative financial innovation. He said it could allow common investors to buy fractional ownership in real estate, infrastructure, and commodities.
