New Delhi, Jan. 24 -- The subsidy burden of the government is expected to rise to approximately Rs 4.1-4.2 lakh crore in the financial year 2024-25 (FY25) more than the budget estimates, according to a report by the Bank of Baroda.

The report highlighted that this increase is driven primarily by higher expenses on food and fertilizer subsidies, which are expected to exceed the budgeted allocation.

It said, "overall subsidy burden is expected to rise to approx. Rs 4.1-4.2 lakh crore in FY25. From that level, the burden is expected to come down to approx. Rs 4 lakh crore in the next financial year".

The government had initially set a budget estimate (BE) of Rs 3.8 lakh crore for major subsidies, including food, fertilizer, and petroleum,...