Food Fertilizer Fuel Subsidies — Policy Reforms

Entry	Year	Description	Impact
National Food Security Act, 2013	2013	This is not a constitutional amendment but a landmark legislative act that transformed food subsidies from a welfare scheme into a legal entitlement. It covers up to 75% of the rural population and 50% of the urban population, providing 5 kg of food grains per person per month at highly subsidized prices.	Significantly expanded the legal right to food, improved targeting through specific criteria, and mandated a grievance redressal mechanism. It formalized the PDS as the primary vehicle for food subsidy delivery, making it more robust and accountable.
Introduction of Nutrient Based Subsidy (NBS) Scheme	2010	A policy shift rather than a legislative amendment, the NBS scheme changed the way non-urea fertilizer subsidies were administered. Instead of product-specific subsidies, a fixed subsidy per nutrient (N, P, K, S) was introduced.	Aimed to promote balanced fertilization, reduce the consumption of specific fertilizers (like urea), and allow manufacturers more flexibility in pricing. It was a step towards rationalizing fertilizer subsidies and making them more market-responsive.
Direct Benefit Transfer for LPG (Pahal Scheme)	2015	A major administrative reform, not a legislative amendment, that changed the delivery mechanism of LPG subsidies. The subsidy amount is now directly transferred to the beneficiary's bank account after they purchase a cylinder at market price.	Significantly reduced leakages, eliminated duplicate connections, and improved the targeting of LPG subsidies. It demonstrated the potential of technology (JAM trinity) in making welfare delivery more efficient and transparent, leading to substantial fiscal savings.
Deregulation of Diesel Prices	2014	A policy decision by the government to allow market forces to determine the price of diesel, effectively removing the government subsidy on diesel.	Eliminated a major component of fuel subsidy, significantly reducing the fiscal burden and market distortions. It brought diesel pricing in line with international crude oil prices, promoting market efficiency and reducing under-recoveries for oil marketing companies.