Saturday, 19 January 2013

Cap On Subsidised LPG Cylinders Is Good move

These numbers are the subsidized LPG cylinders delivered to the house of the ministers when the subsidy burden on LPG is estimated to be about Rs.25,000 crore. Subsidy is nothing but tax payers money which has multiple developmental use. By supplying one subsidized cylinders every day to rich industrialist like Naveen Jindal, the oil companies did nothing but pushing some tax payers money to industrialists’ house.

There are many small shops were one can get LPG car

filled with subsidized LPG. Many restaurants use 

subsidized LPG cylinders. Many marriage halls used 

domestic subsidized LPGs to cook food for thousands of 

people. The tax payer’s money went in drain. If this was 

curtailed we could have saved thousands of crore rupees 

and used it for development purpose.

Restricting subsidized LPG to 6 cylinders a year is a good 

move by Government of India. Six cylinders may be the 

minimum requirement for a small family of 4. On average 

one LPG connection per family got 8 cylinders a year last 

year. While getting 6 on subsidy a family can get another 

two cylinders by paying full amount. This will definitely 

curtail the misutilization of subsidized LPG. 

For government, reducing the subsidy expenditure will help in maintaining lower fiscal deficit. Lower fiscal deficit lowers the external borrowing. In total, though it is viewed as a tough decision by the government will definitely help in country’s prosperity.

Government should take some more brave steps to pay subsidy amount directly to the beneficiary through their bank account. This UID- unique identification – Adhaar number based subsidy scheme is already under pilot run in Mysore. This will definitely give justice to both the tax payer’s money and subsidy.


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