Lok Sabha Question No. 3330 (UNSTARRED), answered on 2016-08-05
Subject: Subsidy
Ministry: FINANCE
Asked by: ASHWINI KUMAR

Subject:

Lok Sabha Admitted Question No. 3330 for dated 05.08.2016 raised by Shri ASHWINI KUMAR, M.P. Lok Sabha regarding SUBSIDY.

## 'SUBSIDY'

3330 by Shri ASHWINI KUMAR, M.P, Lok Sabha Will the Minister of FINANCE be pleased to state:

## Question

- (a) the  item-wise  amount  of funds spent on subsidy during the last three years and the current year;
- (b) the  items  of  expenditure covered  under  subsidy  to be released during the said period of time;
- (c) whether  any  steps  have been  taken  to  streamline the subsidy, control the expenditure on all the subsidies  and  reduce  the fiscal deficit; and
- (d) if so, the details thereof ?

## To be answered on 05.08.2016 SHRI ARJUN RAM MEGHWAL Minister of State for Finance

## Answer

- (a) to  (b).  Item-wise  subsidy  expenditure  is  detailed below:

## (In crores of Rupees)

|                   | Actuals   | Actuals   | Revised   | Budget   |
|-------------------|-----------|-----------|-----------|----------|
|                   | 2013-14   | 2014-15   | 2015-16   | 2016-17  |
| Major Subsidies   | 244717    | 249016    | 241857    | 231782   |
| Fertilizer        | 67339     | 71076     | 72438     | 70000    |
| Food              | 92000     | 117671    | 139419    | 134835   |
| Petroleum         | 85378     | 60269     | 30000     | 26947    |
| Interest          | 8137      | 7632      | 13808     | 15523    |
| Other             | 1778      | 1610      | 2136      | 3128     |
| Total - Subsidies | 254632    | 258258    | 257801    | 250433   |

- (c)  &  (D)  The  government  is  committed  to  progressively pursuing  subsidy  reforms  in  a  manner  that  will  ensure efficient  and  better  targeting  of  subsidies  to  the  poor  and needy,  while  also  saving  scarce  financial  resources  for investment in infrastructure and pursuit of new development programs  announced  by  the  government.  Some  of  the major steps taken are given below:
- i.  The steps taken by the Government to deregulate petrol and diesel prices, and to boost direct benefit transfer of subsidy for  domestic LPG, along  with  decline  in  global crude oil prices, have helped in containing the petroleum subsidy bill.
- ii.  The significantly positive response to the call to give up LPG subsidy under the 'give-it-up' campaign has

| created some fiscal space and facilitated provision of LPG connections to the poor. iii. The rationalization and reprioritization of subsidies through better targeting plays a vital role in fiscal consolidation and in targeting expenditure more towards inclusive development. iv. The Government has also launched a dedicated scheme for end-to-end computerization of Public Distribution System throughout the country. 15 States have already joined the National Food Security Act (NFSA) framework. The Government has launched a drive to ensure universal coverage of Aadhaar throughout the country. End-to-end computerization, combined with Aadhaar coverage to improve the targeting efficiency of PDS system in the country. v. 100% neem coating of indigenous production of subsidized urea has been made compulsory from 25.05.2015 to help prevent its diversion for industrial use. vi. Cash transfer of Food Subsidy Rules, 2015 which was notified on 21.8.2015 under the National Food Security Act, 2013 is currently being implemented on a pilot basis in Union Territories of Chandigarh and Puducherry w.e.f. September, 2015.   |
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