According to the Parikh committee report on petro products, the consumption pattern of diesel in India was : railways-6%, trucks-37%, buses-12%, taxis-9%, , agriculture-12%, industry-10%, power generation-8%,private cars-6%. If we note, agricultural subsidy, as in case of fertilizer and power mostly reach big farmers, that in transport include big trucks, couriers, SUVs.That in power include generators of the business houses and multistoried of the well to do. 1/3rd of the population do not have power supply. So the wasteful subsidy on diesel hardly benefits the real poor. If this subsidy is withdrawn, the revenue generated can be meaningfully spent for Health & Education of the real poor. There can be cash transfers where diesel price really affects the real poor.
Posted on: Thu, 08 Aug 2013 05:08:39 +0000
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