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LPG subsidy for rich may go, says Jaitley
Tribune News Service

New Delhi, November 21
Finance Minister Arun Jaitley today indicated that the next reform agenda of the government will be to rationalise the LPG subsidy so that it is targeted and not available for the rich.

Jaitley indicated that the government was considering doing away with the LPG subsidy for the well-off. "The next important decision India will have to take is whether people like me are entitled to get our LPG subsidy," he said at an event in New Delhi.

"I think the sooner we are able to take these decisions as to who is entitled to these subsidies, of course some people would be, the better it would be for our system.

These decisions are on our agenda," he added. Currently, 12 cylinders are available to consumers at a subsidised rate of Rs 414 each (in Delhi). Any requirement beyond this will have to be purchased at the market price of Rs 880 per 14.2-kg cylinder.

In his Budget speech, Jaitley had talked of rationalising subsidies on fuel, food and fertilizer. Jaitley added that the expenditure management commission set up by the government under former Reserve Bank of India Governor Bimal Jalan will soon submit its initial recommendations on how to rationalize subsidies.

The government has already rolled out the direct benefit transfer of LPG scheme in 54 districts in the first phas. The entire country will be covered from January 1.

Jaitley also sounded caution that it would be tough to meet the revenue targets as credit offtake continued to remain subdued.

On bills to be introduced in the Parliament session, Jaitley said he was "almost ready" with the proposal on the Goods and Services Tax and was confident that the Constitution Amendment Bill on it would be introduced in the next Parliament session starting Monday.