Government of India’s Financial Support Policy under Construction

LPGA report prepared by Nadan Nilekani on the financial support to be presented to the Financial Minister Pranab Mukherjee, claimed to save the government Rs. 50,000 crore. The amount was 50% of the income tax returns that the government was expected to pay this year.

Mr. Mukherjee was determined to make the financial support system of the Government of India more efficient and beneficial. With the support of Mr. Nilekani, the minister claimed to start its pilot project soon.

The main section that the government was looking forward to aid is LPG, kerosene oil and fertilizers. After a trail for six months, the government will prepare a report, on the basis of which government will design its final policy thereby suggesting a reasonable limit to financially support LPG. The financial limit for kerosene was to be decided on the basis of the input of various states over the issue. For fertilizers, phase one would entail complete information on the supply chain up to the retailers level.

As per a source, the government was also going to save Rs. 12,000 crore per annum by cutting down LPG subsidies. Poor consumers may get cash reimbursement on expenses incurred by them on cooking gas, kerosene and fertilizers, if the finance ministry accepts the recommendations of the task force chaired by Unique ID Authority Chairman Nandan Nilekani.