Kelkar: We are not for elimination of subsidies

Kelkar: We are not for elimination of subsidies

Food subsidy is defensible.

The government needs to subsidise kerosene and food for poor,former finance secretary Vijay Kelkar said observing that the committee on fiscal consolidation headed by him was not for elimination of all subsidies.

“I agree with people who argue that we cannot eliminate subsidies,we shouldn’t eliminate subsidies. Food subsidy is defensible. For undernourished children or lactating mothers,food subsidy is not only defensible,it is ethically right and morally correct”,Kelkar said in an interview to CNBC TV18.

“Subsidy must be continued for kerosene as long as it is affordable (for the government),” he added.

Kelkar,in his interview,also said that he has suggested phasing out of subsidy on diesel and LPG.

“We mentioned to remove inequitable subsidies like LPG that do not go to our people who fall in the low income bracket,” Kelkar added.