5/19/2016

EconomicSurvey201516:Betterofftakingthebenefitofsubsidiesrecommendsinterventionsandrectificationofanomalies

PressInformationBureau
GovernmentofIndia
MinistryofFinance
26February201612:20IST

EconomicSurvey201516:Betterofftakingthebenefitofsubsidiesrecommendsinterventionsandrectificationof
anomalies

EconomicSurvey201516findsunevendistributionofRs.100,000croresubsidiesgoingtothebetteroffmerely
onaccountof6commoditieslikegold,LPG,Kerosene,Electricity,railwayfares,aviationandturbinefuel(ATF)
plustheSmallSavingsScheme.ThetotalamountgivenassubsidyisnolessthanRs.91,350crorenottoforget
that this is an underestimate of the actual subsidy to the betteroff because of the underestimation of the
consumptionbytherichintheNSS.IfweaddthesubsidiesinherentinjustthePPFschemes,thetotalsubsidyto
thewelloffamountstoaboveRs.1lakhcrore.ThisrepresentssubstantialleakagefromtheGovernmentskitty,
andanopportunityforegonetohelpthetrulydeserving.
Addressing the interventions and rectifying these anomalies may be good not only from a fiscal and welfare
perspective,butalsofromapoliticaleconomywelfareperspective,lendingcredibilitytoothermarketoriented
reforms.
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