India is rich in minerals, fertile lands, rivers, deltas and many other resources including high demographic dividend, young minds of investment, agriculture and textiles as major income yielding resources of India.
So undoubtedly there must be the intervention of government in some way to boost the economy and for full utilization of these resources, where under such thoughtful circumstances government finally came up with this “SUBSIDY POLICY”.
The subsidy is a benefit given by the government to groups or individuals, usually in the form of-of a cash payment or a tax reduction. The subsidy is given to remove some type of burden and it is often considered to be in the overall interest of the public.The subsidy is very important for a welfare state and it is necessary for a country like India, which is still under the process of ongoing socio-economic development.
As we all knew now what subsidy is, let us know about the fact that,’Are subsidies solution to the problem or are they themselves a problem’.So, moving on to this, government through this subsidy aims at
Many programmes has also been introduced by government for the proper functioning of subsidy system which include, Government launched PAHAL scheme – pan India initiative for transfer of direct benefits for Liquefied Petroleum gas which will save up to 15000 crores by identifying fake beneficiaries Direct Cash Transfer is also being implemented for transfer of wages in MGNREGS scheme. It has resulted in the reduction in delayed and fake payments in relevant areas..