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OIDF Money to Part-Fund Fertilizer Subsidy in FY26

11 February 20251 min read
AGRICULTURE & RURALOIDF Money toPart-FundFertilizer Subsidyin FY2611 February 2025safalsetu.com

Why in the news

Officials said the government will tap the Oil Industry Development Fund (OIDF) for the first time to help pay the FY 2025-26 fertilizer subsidy.

Key facts

  • ₹23,000 crore is shown in the FY26 Budget as net extra resources from reserve funds.
  • Reserves involved: OIDF, Agriculture Infrastructure and Development Fund, Universal Service Obligation Fund.
  • Oil cess receipts flow into the OIDF.

Significance

  • Aims at fiscal transparency and a slight cut in the fiscal deficit.
  • The fund stays fungible but is now aimed at fertilizer support.

Exam angle

  • Fund in focus: OIDF; amount: ₹23,000 crore.

Test yourself

1. Which fund will be used, for the first time, to part-finance the fertilizer subsidy in FY 2025-26?

The OIDF will partly finance the fertilizer subsidy.

2. How much net additional resources from reserve funds did the FY26 Budget provide?

The Finance Ministry provided ₹23,000 crore.

3. Revenue from which levy flows into the Oil Industry Development Fund?

Oil cess revenues are sent to the OIDF.