Financial Daily from THE HINDU group of publications
Tuesday, Nov 23, 2004

Cross Currency

Group Sites

Industry & Economy - Economy

Finance Ministry asks NIPFP to strengthen its report on subsidies

Richa Mishra

New Delhi , Nov. 22

THE Finance Ministry has asked the National Institute of Public Finance and Policy (NIPFP) to strengthen its report on effective targeting of subsidies. "The report has been given back to the institute with certain suggestions. The Ministry has also sought clarifications on some issues," official sources said.

Source told Business Line that the draft report commented on how the existing public distribution system (PDS) could be improved further to ensure that benefits are passed on to the right people. It has also commented on how the minimum support price (MSP) can be better managed. The NIPFP recommendations are expected to find their way into the Budget for 2005-06.

Based on the commitment in the National Common Minimum Programme (NCMP), Mr P. Chidambaram, Union Finance Minister, informed in the Budget for 2004-05 that the NIPFP hadbeen asked to prepare a blueprint on how to rationalise the current subsidy structure.

This was to ensure that benefits from subsidies reach the target segment, that is the poor and truly needy such as small and marginal farmers, farm labourers and the urban poor. The focus of the blueprint was to remain in three segments — food, fertilisers and petroleum.

In fact, NIPFP had earlier also submitted a report on subsidies, which was placed before Parliament seven years ago by Mr P. Chidambaram as the then Finance Minister. The basic focus of the paper was to provide a comprehensive estimate of Budget-based subsidies in which both explicit and implicit subsidies are covered.

To make the subsidies more revenue earning and a more fruitful exercise, some of the suggestions in that white paper were that reforms should focus on using subsidies for well-defined economic objectives, instituting systems for periodic review of subsidies, and setting clear limits on duration of any new subsidy scheme.

More Stories on : Economy

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Wind power policy opens up Govt land for developers

Finance Ministry asks NIPFP to strengthen its report on subsidies
Measures to curb misuse of area-based excise exemptions mooted
Bangalore zone gets Rs 425-cr Central Excise from auto sector
FICCI signs pact with Brazilian counterpart
`SAARC nations must bolster regional co-operation'
Ranbaxy launches new drug for urological disorder
Global symposium on steroid hormones begins tomorrow
Infrastructure projects make tardy progress
Industrial power consumption up in AP
Textile sector seeks fund to revamp high cost debt
Truck, bus tyre output recovers
Demand management of groundwater vital: Study
Centre okays desalination plant in AP
Bid to maintain regular water supply to Chennai — New Veeranam to be backed by Rs 300-cr project
Plea to make credit rating of realtors mandatory
Onkar Kanwar is next FICCI President
Govt awaits GoM report on foreign newspaper titles regn
Allow up to 49 pc FDI in retail sector: ICRIER
AP to launch insurance scheme for girl child soon
Dhan Foundation to offer risk cover for self-help groups
Nurturing growth
Call to utilise NSS services for Mangalore city
BPCL outlets in Kerala to house tourist aid centres
11 industry captains in manufacturing council list

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line