Subsidies on LPG, kerosene to stay

In a relief to the common man, the government is not thinking of abolishing subsidies given on LPG and kerosene anytime soon.

“As far as other subsidies are concerned, because of a large population living below poverty line, some elements of subsidies will remain but then subsidies will have to be rationalised and their procedures will have to differ,” Jaitley said responding to a question on subsidies given on LPG and kerosene.

“It’s precisely keeping this in mind that we’ve requested the expenditure management commission to come out with at least these parts of the recommendations expeditiously so that in the course of this year we can start acting in them,” the finance minister went on to add.

The government on August 13 constituted the Expenditure Management Commission under the chairmanship of former governor of Reserve Bank of India Bimal Jalan.
The other members of the commission include former finance secretary Sumit Bose and former deputy governor of the RBI Subir Gokarn.

The commission is expected to submit its interim report before the Budget for 2015-16 (Apr-Mar) and final report before the Budget for 2016-17.

In his maiden Budget, Jaitley had proposed to set up the commission to look into expenditure reforms to be undertaken by the government.

The Budget had also proposed to overhaul the subsidy regime, including food and petroleum subsidies, and make it more targeted, while providing full protection to the marginalised and the poor sections of society.