FM rules out reducing subsidies for poor

Finance minister P. Chidambaram on Tuesday ruled out cutting down subsidies for the poor but said the government will ensure that they are better targeted.

Addressing a Parliamentary Consultative Committee meeting, Chidambaram said, “Government is committed to fulfilling its responsibility towards the welfare of the poor and downtrodden. There is absolutely no question of diluting this responsibility and cutting down subsidies intended for the poor.” “Efforts of the government are directed to ensure that the benefits of subsidies are maximised by making them transparent, well-designed and targeted,” he added.

In pursuant to CMP mandate, the finance ministry had commissioned a study by the National Institute of Public Finance and Policy, whose report was presented in Parliament on December 23. The FM said the best way to ensure the benefits of the subsidy is to deliver these at target points like in the case of cooking gas.