Subsidies (government subsidies): India

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Fiscal cost of existing central government programmes, as on February 1, 2017; The Times of India, Feb 1, 2017

This is a collection of articles archived for the excellence of their content.

Impact on deficit

2017> ’18: Subsidies reduced but not deficit

August 7, 2018: The Times of India

Amount spent as % of budget estimates, April-June 2017-2018
From: August 7, 2018: The Times of India

India is spending less on subsidies to narrow its budget gap. In three months of FY2018, it spent Rs 11.7 lakh crore ($17 billion) on major subsidies, less than Rs 13.5 lakh crore ($19.6 billion) doled out a year ago. India recorded a fiscal deficit of $62.57 billion for April-June, or 68.7 per cent of the budgeted target for the current fiscal year. It was 80.8 per cent a year ago. For 2018-19, the government has set a fiscal deficit target of 3.3 per cent of GDP against a revised estimate of 3.5 per cent in 2017-18. This is surely a sign of fiscal consolidation, but at a slower pace than that recommended under the Fiscal Responsibility and Budget Management (FRBM) framework.

National subsidies

2013-19

July 6, 2019: The Times of India

2013-19: National (Government of India) subsidies (total)
From: July 6, 2019: The Times of India

2013-19: National (Government of India) subsidies on petroleum
From: July 6, 2019: The Times of India

2013-19: National (Government of India) subsidies on food
From: July 6, 2019: The Times of India

2013-19: National (Government of India) subsidies on other items
From: July 6, 2019: The Times of India

Subsidies in food, 2013-20
From: July 6, 2019: The Times of India

Subsidies in petroleum: Falling global prices was good news but didn't last forever, 2013-20
From: July 6, 2019: The Times of India

Total subsidies: The gains made in the initial years of Modi 1.0 were later wiped out, 2013-20
From: July 6, 2019: The Times of India

% share of fertiliser, food, petroleum, others in total, 2014-19
From: July 6, 2019: The Times of India

One of the positive legacies of UPA govt was subsidy control. Under NDA, it first came down, then went up. Here's a look at the change across food, petroleum, fertiliser and other subsidies over the years.

Assam

2016

Subsidies, Assam; Graphic courtesy: The Times of India, Mar 10 2016

See graphic:

Subsidies, Assam

Kerala

2016

Subsidies: Kerala; Graphic courtesy: The Times of India, Mar 10 2016

See graphic:

Subsidies: Kerala

Tamil Nadu

2016

The Times of India, Mar 10 2016

Subsidies: Tamil Nadu; Graphic courtesy: The Times of India, Mar 10 2016

Sivakumar B

Amma spoils all with dosa, rice and curd

AIADMK, which traditionally restricted welfare to basic necessities, changed tack in 2011, promising everything from goats to grinders even though the 2G scam had already built up anti-incumbency against DMK.

After winning the election, the Amma canteens, pharmacies, cement and bottled water followed -the cost of the welfare schemes for the past 5 years has crossed the Rs 43000-crore mark.

The state-run canteens, especially the ones that cater to urban poor and migrant workers, have been widely appreciated.

The concept is now being adopted by other states also.

The AIADMK government has spent several thousand crores on various welfare schemes with food subsidy alone costing Rs 25,000 crore. But there are outliers too. Anbumani Ramadoss' PMK, for instance, has promised to do away with the freebie model of governance.

DMK has criticised Jayalalithaa's Amma-branded schemes but remains silent on its own freebies such as television sets.

Analysts say schemes such as subsidised canteens and pharmacies will continue. Their names might change if there's a change in the ruling dispensation just as AIADMK changed the name of the free medical insurance scheme when it assumed office five years ago.

But Ramadoss is certain freebies will not have an impact on the voters' decisions. “In 2006 alone, there was an impact the DMK's `1 kg rice for Re 1' scheme made a difference But in the last election, even after offering so many freebies, DMK came third,“ he said.“PMK will offer free services such as quality health care, education, transport instead.“

West Bengal

2016

Subsidies: West Bengal; Graphic courtesy: The Times of India, Mar 10 2016

See graphic:

Subsidies, West Bengal