The government gave a blow to the common people in the Kovid period, the subsidy fell by 32 percent.
new Delhi. Subsidies on petroleum and other items were cut during April to November last year amid the Kovid-19 epidemic. In particular, there was a 32 per cent decrease in subsidy on petroleum products during this period. This information was given in the Economic Survey presented in Parliament on Friday. Let us also tell you what kind of figures have been presented by the government.
Heavy drop in subsidy on petroleum products
According to the Economic Survey presented in Parliament on Friday, in the first eight months of the financial year 2020-21, from April to November, the government has given a total subsidy of Rs 20 thousand crore on petroleum products. This is 32 percent less than the subsidy of about 30 thousand crores given during 2019-20 in the same period. In the Budget Estimates for the year 2020-21, a target of subsidy of Rs 41 thousand crore on petroleum products was set, but in the first eight months it has not even spent half.
What are the reasons
After making the price of petrol and diesel completely market-based, the government now subsidizes petroleum products only on domestic LPG and kerosene under the public distribution system. In this, subsidy has been reduced drastically by increasing the price of subsidized LPG cylinders in the recent past. The subsidy on LPG has been reduced to zero in many major cities including the national capital Delhi due to the price of subsidy and non-subsidized cylinders. This is also a big reason behind the reduction of subsidy burden.
From food to fertilizers subsidy also reduced
During this period, other large subsidiaries have also come down. There has been a 12 percent decline in food subsidy. A subsidy of Rs 1.32 lakh crore was given on this item during April 2019 to November 2019 while food subsidy of Rs 1.16 lakh crore was given during April-November 2020. In the same period, the subsidy given on fertilizers containing specific nutrients decreased by 29.6 percent from Rs 22 thousand crore to Rs 16 thousand crore. Urea subsidy also decreased by 1.8 percent from Rs 51 thousand crore to Rs 50 thousand crore.