Question

"As per the Economic Survey of India 2022 – 23, due to the outbreak of geopolitical conflict, the result was higher international prices for fertilizer and fuel. Thus, there was a higher fuel and fertilizer subsidy requirement for supporting the people."
On the basis of the given text, identify and explain the indicated objective of the government budget.

Hint:

Subsidies are used by the government to reduce the burden of price hikes on essential goods like fuel and fertilizers, helping people during crises.

Answer 1

The indicated objective of the government budget, as mentioned in the text, is to provide subsidies on fuel and fertilizer to support the people during times of crisis. Due to the geopolitical conflict, the international prices of fertilizers and fuel have risen significantly, which impacts the common people, especially those dependent on agriculture and energy. The government’s objective in this situation is to ensure that these essential commodities remain affordable for the public, particularly for farmers who rely on fertilizers for crop production and households that need fuel for daily consumption. The government allocates subsidies in the budget to offset the impact of price hikes, ensuring economic stability and supporting vulnerable populations during external shocks.