Economy Current Affairs for Civil Services

1. PAHAL
By: Harveer Singh
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or consequences arising out of it.
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2. Union Budget Income/ Expenditure
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3. • The government subsidises a wide variety of
goods and services with the aim of making
them affordable for the poor.
• India is expected to spend Rs 2.27 lakh crore
($37 billion) on major subsidies during the
fiscal year 2015-16.
• Out of Rs 2.27 lakh crore, India is to provide Rs
1.24 lakh crore ($20.11 billion) in food
subsidies for the fiscal year 2015-16.
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4. • But overall, subsidies on food, fertilizer and
petroleum have been reduced by over 10 per
cent to Rs 2.27 lakh crore for 2015-16, mainly
due to a sharp cut in petroleum subsidies.
• Are these subsidies effectively targeted at the
poor? Unfortunately, subsidies can sometimes
be regressive and suffer from leakages.
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5. • Electricity subsidies by definition only help
electrified households.
• Even in the case of kerosene, 41 percent of
PDS kerosene is lost as leakage and only 46
percent of the remaining 59 percent is
consumed by households that are poor.
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6. 2014-15 2015-16 (Budgeted)
Food 1,22,675
Crores
1,24,419 Crores
NFSA: 65,000 Crore
Fertilizer 70,967
Crores
72,968 Crores:
 38200 for Domestic Urea
 12300 Crore for Imported Urea
 22468 Crore for P& K Fertilizers.
Petroleum 60,270
Crores
30,000 Crores
 22,000 Crore for LPG
 8000 Crore for Kerosene
Total 2.54 Lac
Crore
2.27 Lac Crore
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7. • The government has earmarked Rs 1,24,419
crore for food subsidy , as against Rs
1,22,675.81 crore in the revised estimate of
current fiscal. Of the total food subsidy, nearly
Rs 65,000 crore is for implementation of
National Food Security Act (NFSA).
• Fertilizer subsidy has been pegged at Rs
72,968.56 crore for the next fiscal, higher than
Rs 70,967.31 crore in 2014-15.
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8. • In fertilizer subsidy, the government has allocated
Rs 38,200 crore for domestic urea and Rs 12,300
crore for imported urea. The remaining Rs
22,468.56 crore has been earmarked for sale of
P&K fertilizers.
• Petroleum subsidy has been halved to Rs 30,000
crore for 2015-16 from estimated Rs 60,270 crore
in the current fiscal. Of Rs 30,000 crore for next
fiscal, Rs 22,000 crore has been earmarked for
LPG subsidy and the rest is for kerosene.
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9. PAHAL: Pratyaksh Hastantaran Labh
Scheme
• The world’s largest cash subsidy under the Direct
Benefit Transfer Scheme was re-launched by the
Union Government in November 2014 in 54
districts and is extended all over the country with
effect from January 1, 2015.
• The scheme was launched for the consumers of
Liquid Petroleum Gas (LPG).
• The modified scheme is referred to as Pratyaksh
Hanstantarit Labh or PAHAL-DBTL (Direct Benefit
Transfer of LPG).
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10. • The PAHAL-DBTL ambitious scheme was
earlier launched on June 1, 2013 by the
previous Government with the objective of
giving cash subsidy on cooking gas and it
covered 291 districts.
• However, the new scheme has made available
the LPG subsidy to all consumers ( With or
Without Aadhar) .
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11. • Under the modified scheme, the consumers who use
LPG can now receive subsidy in his bank account under
two options. Such a consumer who joins the scheme
will be called Cash Transfer Compliant (CTC) and he can
receive subsidy in the bank account.
– Option 1: Primary Option With Aadhar: If the consumers
have their Aadhar numbers, then they have to get the
number linked to the bank account to receive the subsidy.
– Option 2: Secondary option Without Aadhar: If a consumer
does not have his Aadhar number, he can get the subsidy
by linking his bank account with the LPG connection ID.
•
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12. Thank You.
• For any
feedback/query/word of
thanks, the Tutor can be
contacted at
harveersinh@gmail.com
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