Financial Daily from THE HINDU group of publications
Wednesday, Feb 09, 2005

Port Info

Group Sites

Industry & Economy - Economy

No question of cutting down subsidies for poor: Chidambaram

Our Bureau

New Delhi , Feb. 8

THE Finance Minister, Mr P. Chidambaram, on Tuesday reiterated Government's commitment to fulfil its responsibility towards the welfare of the poor and made it clear that there was no question of cutting down the subsidies intended for the underprivileged.

Addressing the meeting of the Parliamentary Consultative Committee attached to the Finance Ministry, Mr Chidambaram said that the efforts of the Government are directed towards ensuring that the benefits of subsidies are maximised by making them transparent, well designed and targeted.

Mr Chidambaram held that the best way to ensure that the subsidy reaches the intended beneficiary is to pay it out at the retail point to the ultimate beneficiary. He shared the view of many members that there are some shortcomings in the procurement, storage and distribution of foodgrains and underlined the need for eliminating the inefficiency and wastage at all levels of the Public Distribution System

He highlighted that providing minimum consumption entitlements to the poor by subsidising the essential items consumed by them was an extremely important welfare dimension of Government expenditure.

At the meeting, wide-ranging discussions were held especially on subsidies for food, fertilisers and petroleum products. Members advanced many suggestions such as effective identification of BPL families, reduction in costs of production, storage and distribution, introduction of food coupons, conversion of fertiliser plants into gas based plants, phasing out of non-merit subsidies, separate rates for commercial and domestic use of LPG, incentive subsidy for employment oriented production techniques, making fertiliser subsidy cultivator oriented and inclusion of more backward areas for subsidy eligibility.

Almost all the members of the committee voiced their concern about the state of the delivery mechanism, which they said should be revamped and improved. The members urged the Government to ensure that the subsidies provided in the Union Budget are effectively and efficiently targeted so that the benefits ultimately reach the poor for whom it is intended.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
IFC plans weather insurance products for Indian markets

Isolated showers in Kerala midlands
Auto majors see rise in Q3 input costs
China has its way at G7 meet
No question of cutting down subsidies for poor: Chidambaram
US graduates India out of aid budget
Applications invited for awards in waste management
Russian trade info centre opened
FICCI, Norwegian chamber sign MoU to boost ties
Sharjah free zone demo
NCB cautions pharma cos on distributors with dubious connections
7 doctors get Wockhardt awards
Drive to tackle jaundice in Kerala
Legislation on special economic zones — Commerce Ministry optimistic GoM will resolve differences
Indo-US summit to discuss infrastructure issues
AP Cabinet okays $300-m World Bank project
KFDC staff plea against closure
Kerala Minister's assurance on endosulfan plant
BPCL to expand Trombay refinery capacity to 12 m.t.
Tapti, Panna-Mukta gas fields — Operators asked to maintain supplies to existing consumers
AES Corp plans to bid for new power projects
Power dreams of duty cuts in Budget 2005
BHEL develops power saving tool
VAT panel seeks removal of CST waiver on inter-State purchases
AP Minister's fiat to tax officials on VAT regime
Kerala: Levy on liquor transport
Textile stocks on radar in post-quota regime
Textiles: New challenges in quota-free era
Minister to review textile sector financials
No plan to revise H1 B visa quotas, says US Ambassador
Caution on Kerala groundwater levels
Tuticorin Fisheries institute plans certificate courses
Deccan Gold identifies new prospects in AP, Karnataka
Nobel laureate's lecture in city
Presentation on `Vinci technology'
Management seminar
Art prints expo in Hyderabad
Export units keen on tax sops
Contributions to The Hindu Relief Fund
`Tea tourism' project of Bengal approved

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line