Subsidy And Tax Should Be Used For Schools And Providing Medical Facilities

1472 WordsJun 10, 20156 Pages
Word counts (excluding figures and references): 1,356 Topic: Subsidy and Tax Chosen news/article: Government targets 1 crore consumers to give up LPG subsidy PTI Mar 29, 2015, 02.47PM IST, The Economic Times 1. Summary • Under the scheme, LPG cylinders are sold at market rates across the country. Consumers get Rs 558 in their bank accounts so that they can buy LPG at the market rate of Rs 605 per 14.2-kg cylinder. • There is a strand of thought that in India the incomes of most consumers remain far below the global average, and, therefore, it is the government’s responsibility to pay for those who cannot afford. • Government expects that about one crore well off consumers will surrender the subsidy on cooking gas after Prime Minister Narendra Modi 's appeal to people not to take subsidy if they can afford to buy LPG at market price. “This money can be used for schools and providing medical facilities. I appeal to people who can afford LPG cylinders at market price, please do not take subsidised LPG,” the Indian Prime Minister said. 2. Background: In fiscal year 2014-15 (to date) there have been no significant increases in the retail price of subsidized LPG. On10th November 2014 it was reported that the per-cylinder subsidy would be fixed at Rs 568 from March 2015 – an amount Rs 163.36 above the average per cylinder under-recovery recorded in early October 2014. Though the government has started DBT for LPG subsidy, the document pointed that the bottom 50
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