The government today hinted that subsidies on petroleum products including diesel and cooking gas will be further progressively cut. Stating this in a written reply in the Rajya Sabha, Minister of State for Planning Rajeev Shukla said due to the huge subsidy burden, government intends to go for targeted subsidies that will promote inclusiveness and also not hurt the poor. He said subsidies under the proposed Food Security Act will also be pre-determined while subsidies on fertilizers will be redesigned.The Minister said government plans to reduce subsidies from 2.6 per cent of GDP in 2011-12 to 1.5 per cent by the end of 12th Plan in the year 2016-17. Expenditure on subsidies during the 11th plan more than doubled from 70,926 crore rupees in 2007-08 to 2,17,941 crore rupees in 2011-12.
News On AIR | March 7, 2013 1:50 PM
Govt hints at progressive reduction in subsidies on petro products