What is wrong if the common man gets subsidy on fuel when big businesses could get stimulus packages to weather economic recession? (Private sector companies Q-4 profit increased by 94% due to this package)
The quantum of subsidies if all the sectors like Fuels , Power , Fertilizers , Rice, wheat in Public distribution system amounts to thousands of crores of rupees which again reflect in deficit financing and consequent Govt borrowings from public , institutions and banks within and borrowals from other countries . The latest downfall of Turkey is said to be due to huge liability due public debts.These subsidies have the root cause of vote banks and in the days of small budgets may have been okay but not in these days . But then how many of public to whom these subsidies are going to are contributing to commercial tax , income tax revenues of the government which is mostly augmented by middle income and high income groups of public .How long they can we shoulder this burden of implications on the total subsidies which pushes the cost of living higher ? . In my opinion sir , The concept of subsidies should totally be eliminated in developing countries like us .