Modi Government Is Ready To Change The Mathematics Of Subsidy
Modi government is ready to change the mathematics of subsidy, where there is a need, there will be a subsidy. The government has decided to change the entire mathematics of the subsidy.
This is reflected in the budget. The government has had to spend a record amount of Rs 5.96 lakh crore during the current financial year on the subsidy, but this is due to the situation arising out of Corona.
Talking of budgetary provisions, the amount of subsidy allocated was Rs 3,27,794 crore in 2020-21, which has been increased to Rs 3,35,361 crore for the next financial year, an increase of Rs 7567 crore.
A large cut in petroleum subsidy, the burden of LPG price will be on the general public.
If you look closely, it is clear that the government will give subsidies to whoever needs it now. The petroleum subsidy, once politically highly sensitive, has been reduced by a total of Rs 27,920 crore.
There is also a message in this that most people will no longer get subsidies on domestic LPG ie LPG.
The increase in food subsidy is an indication that the government does not want to take any risk regarding food security. Reforms will continue, but with political balance.
The Finance Minister has reduced the amount of petroleum subsidy to Rs 12,995 crore during 2021-22 as compared to the budget estimate of Rs 40,915 crore for the current financial year.
The subsidy will be available only to the people living in remote areas or the poor people of rural areas. A large amount will be spent on one crore new Ujjwala connections.
This also means that if crude is expensive in the international market in the coming days, then the general public will have to buy expensive petrol and diesel along with expensive LPG.
Finance Minister said – Kerosene subsidy will not be given any more.
The prices of LPG cylinders have increased several times during the last few months. Similarly, the Finance Minister has also made it clear that kerosene subsidy will no longer be given.
The government argues that earlier kerosene was subsidized for cooking, but now LPG connection is being given to every poor, so it is not needed.
Modi government is ready to change: Food security is not affected.
The Finance Minister has allocated Rs 2,42,836 crore for food subsidy. The amount allocated in the current financial year was Rs 1,15,570 crore.
But due to Corona, the actual expenditure is estimated to be Rs 4,22,618 crore due to the way the government distributed food grains at very affordable rates for eight months.
The government is assuming that all the people who need help in the Corona period may have to continue in the next financial year.
From April to November 2020, 80 crore people were given free or very low-cost food grains with the help of the central government.
Due to the huge increase in food subsidy, the government has to give a total subsidy of Rs 5.96 lakh crore during the current financial year, which is the largest amount so far as subsidy.
The amount of fertilizer subsidy has been increased from Rs 71,309 crore to Rs 79,530 crore.
