The board has suggested that oil cost should be brought up by Rs two per liter while that of LPG tubes needs to be brought up by Rs 50 per cyndrical tube.
According to the suggestions of the Kelkar Panel, the subsidy on oil needs to be decreased by one-third by FY 2015.
Reacting to the review of the committee, the Fund Ministry has said that all the suggestions cannot be applied as some of the financial assistance being given by the government are inevitable.
"The government is of the perspective that in a creating nation where a considerable percentage of the inhabitants is inadequate, a certain level of financial assistance is necessary and inevitable, and actions must be taken to secure the inadequate and insecure areas of the society", Division of Financial Matters (DEA) assistant Arvind Mayaram said on Saturday.
He further said committee's suggestions of drawback of certain financial assistance was in divergence with the mentioned plan of the government.
The government has welcomed feedback of stakeholders on the Kelkar board review.
The Panel, advancing by former Fund Commission payment chair Vijay Kelkar, has suggested phased decrease of subsidy on diesel fuel and LPG in the next four years and decrease in oil subsidy by one-third by 2014-15.'
In case of food and fertilizer financial assistance, the Panel wants the government to improve the urea cost and improve problem cost of foodgrains at ration stores.
It informed that in insufficient these actions, the financial lack of the government could capture up to 6.1 % of the Total Household Product (GDP) in the present financial season. It can be included to 5.2 % with the suggested changes.
The national covered respond to the suggestions comes in awaken of extensive demonstration against its latest choice to improve cost of diesel fuel by Rs 5 per liter and capping of subsidised LPG to six per family a season.
No comments:
Post a Comment