oppn parties LPG Subsidy to MP's is Just Loose Change

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  • Trouble brews in Bihar JD(U)-BJP alliance as Bihar police asks special branch officers to keep tabs on RSS activities
  • Trust vote in Karnataka assembly today. With rebel MLAs deciding to stay away after the SC order, the Congress-JD(S) government is likely to fall as it does not have the numbers
  • Amit Shah says the government will identify and deport illegal immigrants from all parts of the country
  • Reports from Pakistan confirm that Hafiz Saeed has been arrested and sent to jail
  • After the SC order, Karnataka Speaker says he will go by the Constitution in deciding on the resignations of the 16 MLAs
  • Rebel MLAs say they will not attend the trust vote on Thursday
  • Supreme Court rules that rebel MLAs cannot be forced to attend the assembly and vote in the floor test
  • Both the Centre and the Assam government have sought re-verification of up to 20% of draft NRC data
  • Pakistan opens its airspace for Indian planes
  • Dilapidated building collapses in Mumbai, killing more than 10 people while many were still trapped
  • Kulbhushan Jadhav case verdict to be delivered today by the ICJ
  • A Vistara flight landed in Lucknow with just 5 to 10 minutes of fuel left in the tank
  • Supreme Court to decide on Karnataka MLAs plea today
  • Karnataka alliance to face floor test on Thursday
  • China says that the next Dalai Lama will be appointed by it
International Court of Justice agrees with India, stays Kulbhushan Jadhav's execution. It asks Pakistan to allow consular access to the accused.
oppn parties
LPG Subsidy to MP's is Just Loose Change

By Sunil Garodia

About the Author

Sunil Garodia Editor-in-Chief of indiacommentary.com. Current Affairs analyst and political commentator. Writes for a number of publications.
Petroleum minister Dharmendra Pradhan is writing to all MPâ€â"¢s, as well as some state CMâ€â"¢s, to ask them to surrender their subsidized LPG connections and buy the cylinders at market rates. This, he says, will help in cutting the government subsidy bill. If we were to assume that all 543 Lok Sabha and 245 Rajya Sabha MPâ€â"¢s, as also the CMâ€â"¢s of 29 states, give up their subsidized connections, the nation will save Rs. 33 lakh per year in subsidies at current rates. (This has been calculated as 817 persons foregoing Rs 330 per cylinder for 12 subsidized cylinders in a year).

This amount is just loose change when compared with the perks being enjoyed by the MPâ€â"¢s. A look at the table alongside will give a general idea.

ctc-mp-india Source: Be Money Aware Blog

If just the electricity subsidy given to the MPâ€â"¢s is withdrawn, the nation will save Rs 31.5 crore, which is nearly 10 times more than what will be saved if the MPâ€â"¢s give up subsidized LPG connections. Please keep in mind that all the perks given to MPâ€â"¢s are tax free. In addition to these, they also have subsidized canteen facilities in Parliament, pick up and drop from Parliament to place of residence at just Rs 5 per trip, Rs 4 lakh loan at negligible rate of interest to buy a vehicle and grant to buy computers which they can keep after their term is over. You can read the full list at http://164.100.47.134/New_Events_LS/writereaddate/English%20FACILITIES64p.pdf

Hence, as an exercise in reducing subsidies, this is just a gimmick to grab headlines. But such gimmicks have a purpose. If the government manages to persuade the MPâ€â"¢s to give up the subsidized connections, it will set an example. Then, the government can similarly persuade high ranking officials and private individuals having incomes above a certain level. If we believe that corruption flows from top down, then we also have to believe that good social habits will also flow likewise.