Central Budgetary Subsidies In India

• Completion date जनवरी., 1999
• Sponsor Department of Economic Affairs; Ministry of Finance
• Project leader D.K. Srivastava
• Consultants/Other authors H.K. Amar Nath
• Focus

  This study is an update of the earlier study on Government Subsidies in India, completed in 1997, and subsequently published.

  The unduly large volume of subsidies (at more than 14 percent of GDP), and the subsidy regime in India was also critically evaluated in a Discussion Paper (DP) on "Government Subsidies in India" (May, 1997), as being non-transparent, inefficiently administered, poorly targeted, and regressive, leading to misallocation and waste of resources, while keeping government budgets in persistent imbalance. While the states accounted for the bulk of these subsidies (more than 2/3rds ), the remaining subsidies emanated from the central budget.