Substitute subsidies with employment, says economist Akash Jindal

New Delhi, News Nation Bureau | Updated : 21 February 2015, 06:20 PM

Rationalisation of Subsidies

We are facing a situation where rationalisation of subsidies is needed. Now by the term ‘rationalisation’, I mean the schemes should be proposed in a manner that our Below Poverty Line (BPL) brothers and sisters should get employment and should be brought to the levels where they will need lesser subsidies. There are many areas where subsidies are not needed,  Government should plan out a mechanism to eradicate those subsidies.

The leakages in subsidies should be eradicated, for example MNREGA was launched for the people to provide employment to the people near them, but later it was found that some of powerful people were misusing the funds released by Government for poor

As an expert, I feel that government should move in a positive direction that malpractices being carried out in the process of delivering subsidies should eradicate. 

Substitute Subsidies with employment

I am not saying that government should fully curb subsidies. In a country like India where a large number of people are Below Poverty Line and couldn’t even get basic amenities i.e Roti, Kapda aur Makaan (food and shelter), subsidies are a necessity. But, the need of the time says that we should move from subsidy culture to high salary culture. I see Government’s make in India scheme a helpful asset in the process.

The Make in India scheme: Make in India means that lot of industries in our rural and remote areas.  This ultimately means that many of our rural friends would get employment in those industries as drivers, labourers, guards etc.  Which will increase their monthly income by large. Now if we decode further, a person who is earning Rs.3000 a month will ultimately be able to earn 10-12 k a month. So, when a person will be able to increase his income by large he ultimately will require lesser subsidies.

So, as of now slowly and slowly we have to substitute subsidies with employment. The basic idea is that their earning should increase many folds.

Also the awareness and education should also increase. Suppose, if there is an unemployed woman in the house, and we make her agreed to work in a factory the family income will be doubled or at least turn 3/4.

Again, my core point is that from a subsidy culture we should move towards a high salary culture.

First Published: Saturday, February 21, 2015 05:35 PM
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