2015-16 Economiv Survey - Rs 1 lakh crore subsidy disproportionately goes to the well-off Friday February 26,2016

 

The 2015-16 Economic Survey tabled on Parliament on Friday February 26,2016 said the Rs 1 lakh crore of subsidy going to the better-off merely on account of 6 commodities plus the small savings schemes represent a substantial leakage from the government's kitty, and an opportunity foregone to help the truly deserving.

According to the survey, the subsidy on account of six commodities is Rs 91,350 crore. "If we add the subsidies inherent in just PPF schemes, the total subsidy to the well-off amounts to above Rs one lakh crore."

Among six commodities, the maximum subsidy to the rich is for LPG at Rs 40,151 crore followed by electricity Rs 37,170 crore, Kerosene Rs 5,501 crore, Gold Rs 4,093 crore, Railways Rs 3,671 crore and ATF Rs 762 crore.

While subsidy on account of Public Provident Fund is Rs 11,900 crore taking the total to Rs 1,03,249 crore.