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

News Snippets

  • Government to introduce PF for self-emplyed and gig workers
  • Crush at Puri Rathyatra leaves 2 dead and 78 injured
  • NEET-UG, marred in controversy due to pape4r leak, saw a huge increase in top scores as two scored 715/720 and 11.2 lkah candidates cleared the exam
  • India's first hydrogen-powered train will be flagged off by PM Modi from Jind in Haryana
  • Delhi HC asks the government to monitor Sona Wnagchuk's health regularly
  • TMC Rajya Sabha MP Koel Mallick resigns from her seat, leaves TMC. Mamata asks all those wishing to leave the party to do so before July 21
  • Calcutta HC says land deed is not a proof of citizenship. Refuses to provide protection to a man facing deportation on basis of land deed
  • Supreme Court tells the government to teach the third language in the 3-language formula in Class 6 and not Class 9
  • Government to take steps to boost liquidity for small businesses
  • RBI says that banks cannot sell seized assets back to the defaulters
  • Centre decides to take equity stakes in semiconductor startups
  • Markets remain flat on Thursday: Sensex closes just 1 point ahead and Nifty ended 5 point lower
  • BCCI:Selectors have possibly decided that Rohit Sharma will not be selected for ODIs after the Lord's game on Sunday
  • Japan Open badminton: P V Sindhu stuns world no. 5 Han Yue of China 21-16, 21-14 to enter the quarterfinals
  • 2nd ODI versus England: Indian batting fails miserably except Gill, Kohli and Iyer to score just 233 all out. England win by 4 wickets
Supreme Court clarifies that it has not issued a blanket ban on use of bulldozers, and they can be used after compliance with procedure laid down in civil laws
oppn parties
LPG Subsidy to MP's is Just Loose Change

By Sunil Garodia
First publised on 2015-01-15 16:13:55

About the Author

Sunil Garodia Editor-in-Chief of indiacommentary.com. Current Affairs analyst and political commentator. Author of Cyber Scams in India, Digital Arrest, The Money Trap and The Human Hack
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.