Modi government is planning to end subsidy on LPG cylinders for rich people. This was hinted by Finance Minister Arun Jaitley on Friday. Addressing the audience at Hindustan Times Leadership Summit, the Finance Minister said that the well off in the society does not need the subsidy on LPG that was meant to serve the interests of the poor. It has to be recalled that the government has already ended subsidy on diesel and the next decision to put economy of the country back on rails could be scrapping LPG subsidy for rich people.
The move may hit the middle class but it will boost the economy
“The next important decision that India will have to take is whether people like me… (Should be) entitled to an LPG subsidy. I think the sooner we are able to take decisions as to who is entitled to these subsidies the better it will be for our system,” said Jaitley while addressing at HT Leadership Summit. All people are entitled to 12 cylinders of LPG at subsidized rates at present. This subsidized LPG cylinder costs less than 450 Rupees. If someone requires more LPG cylinders beyond this limit, he has to buy it at the market rate that stands at Rupees 880 at present.
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The Home Minister was of the view that it was a matter of taking strong decisions. He said, ‘’Once political leadership, particularly the man on the top, has decisiveness, the most complicated of the decisions will also become simple.’’ He was obviously referring to PM Modi who has shown that he can take tough decisions in matters of public importance rather than delaying decisions as was the case with the previous UPA government.
Government has taken strong decisions since coming to power
Modi government has deregulated prices of diesel since coming to power in May. It has also modified the direct cash transfer of subsidy on LPG, with the modified scheme already having been introduced in 54 districts across the country. Soon this modified scheme will be implemented in all districts of the country. The government also did not waste any time to decide on coal blocks. Waiting to take a decision for years can only complicate the issues, feels Jaitley.
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India cannot delay reforms anymore
Arun Jaitley said that India is at a crucial stage of development with investors from across the globe closely monitoring the economic climate of the country. He added that decisions cannot be delayed any longer as we cannot test the patience of these global investors. The Finance Minister informed the gathering at HT Leadership Summit that his government was almost ready to introduce the reforms in Goods and Services Tax. He said that the the government would bring the Constitution Amendement Bill in the next session of the Parliament. He also mentioned that the long standing insurance bill will also be tabled in the parliament soon.
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After food grains and urea, subsidy on LPG forms the biggest amount given out by the government to serve the interests of poor people of the country. In 2013 alone, oil companies lost an estimated Rupees 47000 crores on account of LPG subsidy.
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About Sanjay Tandon
Sanjay Tandon is a graduate engineer from IIT Varanasi. He has been writing as a freelancer for many years. He loves to write on various niches. He is passionate about politics and economy and spends his free time watching news channels. He is also an expert on relationships.
