Subsidies are a major component of expenditure they are a form of transfer payment given by government to the People. Subsidies can be classified as food, petroleum and agriculture subsidies.
Why rationalisation:
Government expenditure power is limited and they cannot go beyond a point further the fiscal deficit should be solely utilised for the purpose to finance capital assets creation. Secondly in revenue expenditure most of them is committed one. Hence scope of reduction lies with the revenue subsidies only. Third, most of the reports have suggested low efficiency and mis targeted subsidies. Hence rationalisation if the need of the hour.
Measures taken to rationalise subsidies:
- Use of direct benefit transfer to plug the leakage. Like PAHAL scheme.
- Use of technology to disburse subsidies like : Point on sale machine, Aadhar machine enabled payment
- Removal of subsidies on petroleum and diesel.
- Moral suasion by Prime Minister to give up subsidies.
- Creation of objective database to remove duplicacy in disbursal.
Final Destination for Haryana PSC Notes and Tests, Exclusive coverage of HPSC Prelims and Mains Syllabus, Dedicated Staff and guidence for HPSC Exams HPSC Notes brings Prelims and Mains programs for HPSC Prelims and HPSC Mains Exam preparation. Various Programs initiated by HPSC Notes are as follows:-
- HPSC Mains Tests and Notes Program
- HPSC Prelims Exam 2024- Test Series and Notes Program
- HPSC Prelims and Mains Tests Series and Notes Program
- HPSC Detailed Complete Prelims Notes