5/19/2016 Economic Survey 2015­16: Better off taking the benefit of subsidies; recommends interventions and rectification of anomalies

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26­February­2016 12:20 IST

Press Information Bureau Government of IndiaMinistry of Finance

Economic Survey 2015­16: Better off taking the benefit of subsidies; recommends interventions and rectification ofanomalies

Economic Survey 2015­16 finds uneven distribution of Rs. 100,000 crore subsidies going to the better­off merelyon account of 6 commodities like gold, LPG, Kerosene, Electricity, railway fares, aviation and turbine fuel (ATF)plus the Small Savings Scheme. The total amount given as subsidy is no less than Rs. 91,350 crore not to forgetthat this is an underestimate of the actual subsidy to the better­off because of the underestimation of theconsumption by the rich in the NSS. If we add the subsidies inherent in just the PPF schemes, the total subsidy tothe well­off amounts to above Rs. 1 lakh crore. This represents substantial leakage from the Government’s kitty,and an opportunity foregone to help the truly deserving.

Addressing the interventions and rectifying these anomalies may be good not only from a fiscal and welfareperspective, but also from a political economy welfare perspective, lending credibility to other market­orientedreforms.

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