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.
Amruta fadnavis statement: A statement by Amruta Fadnavis, wife of Maharashtra's Deputy CM Devend
Salaar: 'Salaar' shows will run from 1 am to 4 am, Telangana government gives permission
Actor Prabhas's much talked about film 'Salaar' is very close to release. Booking is going on in
The story of the murder of Kanhaiyalal, the owner of a tailor shop in Udaipur, was told by his ar
There is often news of tension between India and Pakistan, but very rarely when it comes to love
During the peasant movement, there was a ruckus on the Singhu border on Friday. Around 1 in the a
How Nizamuddin Markaz Became Covid-19 Hotspot; More Than 8,000 Attendees Identified
दिल्ली के निजामुद्दीन मरकज में तब्ल
India vs Ireland: Why did Umran Malik bowl in the last over? Captain Hardik Pandya told the reason
Under the captaincy of Hardik Pandya, the Indian team won its first T20I series. They achieved a
The Indian football team has started with a win in the SAFF Championship. They thrashed arch-riva
Veer Bal Diwas: PM Modi said on Veer Bal Diwas, 'Today's youth wants to do something'
Veer Bal Diwas program was celebrated today at Bharat Mandapam in Delhi. Prime Minister Narendra
Modi salutes CISF on Raising Day
New Delhi, March 10 (IANS) Prime Minister Narendra Modi on Tuesday saluted the "bravery" and "s
