New Delhi, Feb 27 (IANS) Price subsidies did not have a transformative effect on the living standards of the poor, though they helped poor households to weather inflation and price volatility, the Economic Survey for 2014-15 revealed here Friday.
"A close look at price subsidies, which are estimated to be about Rs.378,000 crore, about 4.24 percent of GDP (gross domestic product), reveal that they may not be the government's best weapon for fighting poverty," the survey, which was tabled by Finance Minister Arun Jaitley in parliament, said.
Dwelling upon various subsidies to the poor, the survey even stated that these are often regressive.
"An analysis of the current subsidy scheme indicates that rich households benefit more from the subsidy than a poor household," it said.
Among various examples that it had dwelt upon, the survey said subsidy on electricity can only benefit the relatively rich.
The survey, however, concluded that eliminating or phasing down subsidies is neither feasible nor desirable. "By adopting what it called the JAM Number Trinity - Jan Dhan Yojana, Aadhaar and mobile numbers - would allow the state to deliver the subsidies to poor in a targeted and less distorted manner," it added.
"Rationalisation of subsidies, better targeting of beneficiaries will release funds for public investment in agriculture," the survey said.
"Converting all subsidies into direct benefit transfers is a laudable goal of government policy," it added.
Oppo India has announced that most of its 5G phones have received a software update that supports
WPI: WPI 13.93% in July, slight relief compared to June
Inflation based on the Wholesale Price Index (WPI) in the country stood at 13.93% (provisional) i
The Covid-19 has a profound adverse impact on the Indian economy. The reason for this is that the
The havoc of Corona is increasing rapidly in North Korea. About 17 lakh people are corona positiv
PM Modi is calling the Corona Warriors, the nurse said in the conversation- you too are our god
new Delhi
Prime Minister Narendra Modi is calling personally to boost the morale of the C
Exemptions were announced in some more cities including Urumqi on Sunday after vigorous demonstra
Respect the rule of law, 43 countries showed the mirror to China on Uighur Muslims
The dragon has been reprimanded by 43 countries around the world for atrocities against Uighur Mu
Ajay Banga may be the first American Indian to head the World Bank, nominated by Biden
US President Joe Biden has nominated Ajay Banga for the important post of President of the World
The final match of ODI World Cup 2023 is to be held between India and Australia. Both teams are f
The number of people investing in cryptocurrencies in the country continues to grow, even though