Discipline in subsidy disbursal continued as states disbursed 112 percent of subsidy booked during FY23

State governments disbursed 112 percent of subsidy amount booked in FY23, compared to 103 percent and 84 percent in FY22 and FY21, respectively.

Tariff subsidy disbursement (intrinsic part of state discoms’ revenues) was 108 percent in FY23, crossing the 100% mark for the second consecutive time. Other subsidy disbursement (ad-hoc subsidies provided under various center/state schemes, such as UDAY, AtmaNirbhar Bharat, etc. to support financially weaker discoms) increased from INR 16,000 Crore in FY21 to 23,000 Crore in FY22 to INR 44,000 Crore in FY23.