Linking AADHAAR With Subsidy Scheme

Subsidy being provided by the Government during the last three years, item-wise:

(Source: Statement No.4, Exp. Bud. Vol.I for the year 2011-12, 2012-13 & 2013-14)

Several measures were outlined in the Union Budget 2014-15 to revive growth in the economy that, inter-alia, included : fiscal consolidation with emphasis on expenditure reforms via constitution of the Expenditure Management Commission; continuation of fiscal reforms with rationalization of tax structure; measures to boost agriculture vide emphasis on irrigation and long-term credit; fillip to industry and infrastructure, inter-alia through fiscal incentives and concrete measures for transport, power and other urban and rural infrastructure; measures for promotion of Foreign Direct Investment (FDI) in selected sectors, including Defence manufacturing and insurance, Steps to augment low cost long-term foreign borrowings by Indian companies and boost savings. 

Fiscal reforms have been bolstered further by the recent de-regulation of diesel prices. The ‘Make in India’ indicative, launched in September, 2014, along with attendant facilitatory measures, are expected to create a more conducive environment for investment in India. These steps, along with the labour reforms announced recently, are expected to boost business confidence and re-start the investment cycle in the economy. 

Government is following the policy of progressively reducing the expenditure on subsidy through improved targeting of beneficiaries. Government aims at aligning the pricing policy for subsidized goods to ensure that the total subsidies remain within affordable levels. For better targeting of subsidies, direct benefit transfer has been introduced in LPG cylinders. 

In modified DBTL (Direct Benefit Transfer of Subsidy in LPG), subsidy is transferred directly into the bank accounts of the LPG consumers. However, consumers having Aadhaar can get it linked with their bank accounts and consumer database. 

Last Updated: December 5th 2014.