The burden of subsidies on fuel, fertilizer and food have significantly increased on government on account of rise in international prices and increase in Minimum Support Price. According to medium-term expenditure projections under the Fiscal Responsibility and Budget Management, in revised estimation of Budget for 2011-12, there was a provision of 2,08,503 crore rupees for major subsidies, which represents a growth of 26.7 per cent over 1,64,516 crores rupees in 2010-11.It is projected that with suitable policy interventions the subsidy expenditure will reduce from 1.9 per cent of Gross Domestic Product, GDP in budget estimate 2012-13 to 1.6 per cent of GDP by 2014-15. This is critical for successful fiscal consolidation. The fertiliser subsidy will reduced to 65,735 crore rupees in 2014-15. It was 67,199 crore rupees in 2011-12. However, the food subsidy will increase in 2014-15 to 95,000 crore rupees from 72,823 crores in 2011-12. The subsidy on petroleum will be stabilized to 43,580 crore rupees, which was 68,481 crores rupees in 2011-12.