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Subsidies in India




Price of LPG is a general subsidy given to all irrespective of income, which was not a good idea to begin with. Subsidy balloon starts growing bigger and bigger and it is not sustainable. Now Modi is urging rich folks to give up LPG subsidy.

http://www.thehindu.com/news/national/give-up-lpg-subsidy-modi-urges-the-rich/article7041507.ece

Indian Railways is another giant which subsidizes rail travel, again it is not based on income of the traveler. They are also cash strapped as they do not have money to modernize the system.

Many states in India doles out freebies, all from public money. May be one day it will catch up with them.

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rajcanada
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Post ID: 220922 20-04-15 15:05:01
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ramar2005
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Subsidies are bad. But it will be one sided to call it doles, freebies etc., when it comes to the masses. But when the rich get it it is called exemption. They wilfully default in repaying their bank loans, and call that Non-Performing Assets, Exposure etc. Aren't bank money, people's hard earned savings, but get finally written off by the government. The government must strictly prevent corruption and the rich from looting the country' wealth and their non-payment of taxes. Then the masses too would have enough money in their hands to pay on their own and not expect subsidies, which are nothing but a fraction of the loot.


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Post ID: 220925 20-04-15 20:09:19
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tamilkuravan
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True. Subsidies for the unneedy are a curse for India.
I earn very well yet I get my gas subsidized. There is a form for me to fill to cancel my subsidy. I am lazy to do it.
There are rich people who buy from ration.
I will put the govt. to task. They have specifically given BPL ration cards to the poor. They should confine the subsidies to those who have BPL cards.
Now Kerala gpvt. is charging 50 ps for every litre of petrol to fund the public bus service and 50 ps. to fund poor people housing. I feel that they should charge atleast 5 Rs. extra for all these related service. A 50 ps increase in the price of petrol is likely to bring rs. 350 crore of additional revenue to the Govt.

Murali

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Post ID: 220933 21-04-15 09:37:27
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tamilkuravan
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I have heard that the Tatkal scheme is a form of revenue generating teachnique. Also is the increased cost of booking in certain express trains.
Many IT people / office people book via the internet whereas poor people line up for hours to get a train ticket (subsidized).
What I feel is that the Govt. should divide 1/2 of the second class for people who line up for subsidzed rate/ book from railway authorized agencies and people who do private booking (like me and many techies) should pay enhanced railway prices.

From Kerala to Chennai is 99o kms. I pay rs. 432 in second class for it. Travel is 16 hours. Toilets are clean. So clean that I use it in the morning. This Rs 432 price can be raised to Rs 600. if I am peeved of it, I should line up to get the ticket.

Murali

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Post ID: 220934 21-04-15 09:41:46
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Full House
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I HEAR YOU LOUD AND CLEAR...
Quote:
Originally posted by tamilkuravan

True. Subsidies for the unneedy are a curse for India.
I earn very well yet I get my gas subsidized. There is a form for me to fill to cancel my subsidy. I am lazy to do it.
There are rich people who buy from ration.
I will put the govt. to task. They have specifically given BPL ration cards to the poor. They should confine the subsidies to those who have BPL cards.
Now Kerala gpvt. is charging 50 ps for every litre of petrol to fund the public bus service and 50 ps. to fund poor people housing. I feel that they should charge atleast 5 Rs. extra for all these related service. A 50 ps increase in the price of petrol is likely to bring rs. 350 crore of additional revenue to the Govt.

Murali



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Currently, you are paying $1.25 Canadian for a liter of Petrol a lot lesser for Diesel. There are taxes built into it. We are paying just under a dollar today. There are taxes built into it. Now they are adding an additional tax on top of it to pay for something else such as a subsidy for those who are using public transportation and for public housing.

Do tell me have the fares gone down there? Or have you seen a house being built anywhere today for the poor people of Kerala. It is all a grandiose project in mind and they will collect and hold these funds till such a time they will start building them. It also takes some time to start and build a project from the ground up. Watch and see what will take place. We can continue the exchange later on in another thread.

Now the question is, how does one justify such levies and subsidies which is taxing one individual and distribute it to another group. This has been going on forever. In my opinion they are using an avenue to indirectly tax a group of users and then distribute it to another.

Just to give you a rundown of things that are happening here..: The Secondary School Teachers are on a Strike, because the Government froze their wages Three years ago and paid them only the amount based on cost of living allowance here in Ontario, and through arbitration. The city in anticipation has increased our city taxes by 2.75% of the taxes paid last year. Now we are on the hook for the additional sum. This is an educational system that we support and it is UNIVERSAL.

I do not want you to compare India with Canada. But the question is, it looks like we all are sitting ducks and we are getting flogged, does not matter where we live. We elect an individual to represent us and take care of our interests. But when he is on the other side he does exactly the opposite and extracts from us more money for public usage.

This has been going on forever. Taxes, taxes and taxes. There are a lot of taxes that they can load and keep on loading them. But they forget one thing, there is only ONE PERSON that is getting taxed. that is YOU. Only ONE INDIVIDUAL. How much more can an individual take it before the system collapses? Your guess is as good as mine.

Yes there are subsidies that are given to everyone, without looking into where the individual who is receiving it is in the financial strata. That becomes UNIVERSAL. We have that here too. But some or all of it gets clawed back somewhere else. That is doing justice. It is done through a hidden process.

Do they charge you for breathing OXYGEN in India? I know you are saying NO!. Yes we are getting charged here, it is called carbon tax.!! So, where is all of this heading to? You use a horse drawn cart there in India.(may be bullock cart) Does the Government give back a subsidy for its use? These are all the avenues that the Governments think about to justify their existence in every part of the world to make them look as an advanced community. They all hope that they will achieve the end goals. And when they do, will they stop charging more or perchance reduce the levies?

Seeing all of this, it is time for all of the taxpayers to form a union of sorts and fight these extortion methods and curtail the whims and fancies of so-called generous politicians who only want to further their cause and their political ambitions and existence which they have been doing for a very long period.

I would like everyone to get to the root causes before determining such levies. One such problem that India is experiencing is Population Explosion. The cure for all of this is not using the ROBINHOOD PRINCIPLE, which you already know. Rob the rich and pay it to the poor.

The second one is POVERTY. Eradication of the poverty should be the next.

These are the people who have given up hopes in their lives. They live there in India.
Despite roti, kapda aur makaan being bare necessities, we live in a country where almost everyday we come across scantily clothed people on the street. Sitting or sleeping on pavements, finding shelter in subways, cursing the harsh weather. We feel bad for them but then we move on. One man refuses to ignore the grim reality staring at us.

Read more at: http://www.moneycontrol.com/news/special-videos/goonj-way-to-enlighten-peoples-lives_780714.html?utm_source=ref_article

Some people live in the past, which was based upon a farming community. In Newfoundland they lived on Cod Fish and Boiled Potato. In the Prairies, the agricultural communities lived on Meat and Potatoes or a Boiled Meal, or Soup and a loaf of bread. But it is not the same anymore. It is a NEW WORLD and NEW Generation and we need to prepare them to enter into it. The question remains HOW?

Life goes on. For some people it is going very smoothly and for a few it will always be a struggle.

It is time that we find PEACE First and divert our funds, effort and attention to all of the other causes after that. Currently, we are not focused and we are squandering all of this
every-which way.

Quo Vadis?

FH.
http://www.mypetrolprice.com/35/Petrol-price-in-Trivandrum


 
Post ID: 220941 21-04-15 13:17:58
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ramar2005
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In India of the last 25 years, the unwritten policy has been rob the have nots in the form of taxes and pay the rich. But the robbers need not wear any 'hood' because they are already called government.

In countries like Saudi Arabia, the people of the country enjoy the wealth generated from mining of oil. At least they are not starved. Not so India. For example, in TN, lacs of crores were generated by illegal quarrying of mineral sand from beaches, granite and river sand. The first two were exported and the last used in building construction for domestic . But the people of TN have hardly benefited, but only a few become rich.

Now it will be foolish if some of us who are in middle class or those who do not have to borrow for month end expenses to let go off their LPG subsidy. There is no guarantee it will go to poor but 100% certain the money will fall into the coffers of the corrupt and rich, which coffers are already overflowing.

Where is the question of "robbing" these so called "rich" in TN and paying the poor. All the illegal wealth of the rich must be confiscated and provided to people in the form of good roads, sea water desalination plants, drinking water, hospitals and educational institutions. The poor will take care of themselves.

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Post ID: 220956 21-04-15 20:28:30
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ramar2005
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Location: India.


Here is Times Now news on subsidy for MPs in parliament canteen.

Must read for TK who wanted to give up his LPG subsidy.

Parliament canteens serving to Members of Parliament got a total subsidy of 60.7 crore during last five years with items like 'puri sabji' being sold at 88% subsidised rates, an RTI reply shows.

http://www.timesnow.tv/Debate-Your-money-their-feast/videoshow/4477470.cms

Why should our MPs get subsidy for food when they are paid TA, DA and other allowances for their attending parliament on its working days.

Why can't NaMo forego subsidized price in canteen at least for his MPs, when he asks the middle class to forego the same for LPG.

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Post ID: 223519 25-06-15 00:14:15
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tamilkuravan
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Ramar,
There is now a new scheme wherein you just have to SMS " Give it up" to a number and they will remove the subsidy.
Reliance ind. has advised all its employees to forego the subsidy.

I could have done it but still have not done it as I have much losses from the stock market. But I will do it soon. Anyways, against my quota of 9 subsidized cylinders per year, I used inly 5 a year.

Well, I am really not sure if to support you or not. MP's are all lawmakers and they decide the fate of the nation. So they must be well paid, well fed and well accomodated. The principle here is to make their life comfortable so that they will not take bribe. That was the concept. Now almost 99% of MP's take bribe for either themselves or their party. But if you remove the subsidy everyone will say that, since cost of living / expenses have gone up and no subsidized food is provided, this gives an incentive for the MP to take bribe.

We will have to leave gaps in the systems in the hope that a manohar parrikar, or a rob ford or a Arvind Kejriwal or a Anna Hazare becomes an MP and it is worthwhile for them to be MP's.

Murali

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Post ID: 223520 25-06-15 05:52:47
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ramar2005
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Location: India.


Today saw full page advertisements in The Hindu of NaMo exhorting LPG consumers to let go of subsidy on cooking gas cylinders.

How wonderful would it have been if he had started it at the Parliament canteen. Here Masala dosas priced outside at Rs.60 or more are sold for Rs.6/-. And the people's representatives have done gluttony of people's money to the tune of 60 crores in the last 5 years. The MPs are paid daily allowances for attending parliament during its working days. If they do not pay for the canteen food from the allowances they receive but continue to eat 60Rs. masala dosas for just Rs.6/-, then it is plain cheating. Staff other than MPs must pack their lunch boxes from home, if they cannot afford Rs.60/- for these dosas, like any other common man in India.

Like charity whch begins at home, why not NaMo ask his MPs to pay back their allowances to the canteen. And then he can ask for ordinary people to forego LPG subsidy. That is, if he is really leader and not just manager.

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Post ID: 223851 01-07-15 06:36:39
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tamilkuravan
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Ramar 2005,
With due respect, why donot you start the message.
Write a mail to the PMO, Chief Secretary, Parlimentary board and ask them to increase the prices to atleast no profit basis.

I have been writing to my college (which is a reputed central govt. engineering college) asking them to change the curriculam, stop wasteful expenditure but to no avail.

But we should not stop trying. Drops makes the ocean.

All the best.

Murali

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Post ID: 223853 01-07-15 06:47:49
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Contributors:
Full House(1)  rajcanada(1)  ramar2005(5)  tamilkuravan(4)  
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