SME Times is powered by   
Search News
Just in:   • Markets close with marginal gains despite weak global cues  • Pay Rs 275 cr by Dec 31, SC tells Jaypee  • Workshop on new National Policy on Biofuels held  • 'Honor 8 Lite' 64GB variant now available at Rs 15,999  • Centre considers hallmarking 24 carat gold jewellery 
Last updated: 27 Sep, 2014  

Pranab.9.Thmb.jpg Pranab worried about rising subsidy bills

Pranab.9.jpg
Pranab Mukherjee addressing a conference on Targeted Public Distribution System, in New Delhi on Wednesday.
   Top Stories
» Modi expresses concern over large number of grievances of consumers
» Cabinet approves constituting 15th Finance Commission
» Panel set up to draft new Income Tax Act
» Ordinance for changes to Bankruptcy Code soon
» Garment exporters losing competitiveness by 9 pc: AEPC
SME Times News Bureau | 09 Feb, 2012
A worried Finance Minister Pranab Mukherjee Wednesday said he is losing sleep over the rising subsidy bills, notably on food, fertiliser and petroleum products.

"As finance minister when I think of the enormity of the subsidies to be provided, I lose my sleep," Mukherjee said in New Delhi at a conference to discuss reforms in the public distribution system (PDS).

Due to a sharp increase in subsidies and decline in tax and other revenues, the fiscal deficit is expected to be around 5.6 percent as per some estimates, against the budgetary target of 4.6 percent.

An widening fiscal deficit coupled with the slowdown in economic growth and persistent inflationary pressure have complicated the situation for the finance minister, who on March 16 would present the union budget for fiscal 2012-13.

Mukherjee said there was a need to boost food production through a "second green revolution" that would help reduce the food subsidy bill.

"We did achieve our self-sufficiency in food by the Green Revolution, but we now need that second revolution that will take us to a new trajectory where we can feed all and feed them with a view to ensure nutrition balance as well."

Mukherjee said the government had initiated a programme to take the green revolution to the eastern region of the country.

He also said more investment in agricultural infrastructure was required, which over the last few years had seen "a turnaround in its declining trend".

Addressing the opening session of the two-day conference in which Union cabinet ministers, food and agriculture ministers from states and senior government officials are taking part, Mukherjee said procurement of foodgrains and enhancement of storage capacity in view of the proposed National Food Security Act.

The finance minister called for joint efforts by the centre and states to modernize the PDS to make its reach more effective to the targeted people. He said the unique identification numbers or "Aadhaar" would help curb leakages.

"The use of the Aadhaar number in PDS will reduce duplicates, fakes and ghost beneficiaries in PDS databases which will result in reducing wastage and diversion in the system," he said.
 
Print the Page Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
66.20
64.50
UK Pound
87.50
84.65
Euro
78.25
75.65
Japanese Yen 58.85 56.85
As on 24 Nov, 2017
  Daily Poll
Is counterfeiting a major threat to SMEs?
 Yes
 No
 Can't say
  Commented Stories
» Starting an import export business: Basic guide for beginners(12)
» Moody's upgrade: Thumbs up to reforms(5)
» Entrepreneurship is a lonely path for women(2)
» 'Exporters can now manually file claims for GST refunds'(1)
» SC asks Unitech to deposit Rs 750 cr by December end(1)
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter