The central government spent Rs 3,559 crore on LPG subsidy during the financial year 2021. In the financial year 2020, this expenditure was Rs 24,468 crore. This expenditure has been done under the DBT scheme. It was started in January 2015, under which customers have to pay the full amount for non-subsidized LPG cylinders.
New Delhi. An internal assessment by the central government indicates that customers may have to pay Rs 1,000 per cylinder for LPG cylinders. Actually, the central government can completely eliminate the subsidy on LPG cylinder. However, so far nothing has been said clearly from the government on this.
The Modi government has discussed the issue of subsidy on LPG cylinders many times, but no plan has been made yet. According to media reports, the government has 2 options. First, supply cylinders without subsidy and second, some customers should continue to take advantage of price discounts.
What can the government do?
Nothing has been said clearly from the government about the subsidy on LPG cylinders. According to reports, the rule of annual income of Rs 10 lakh will be kept in force. Apart from this, the benefit of subsidy will continue to the beneficiaries of Ujjwala Scheme. At the same time, the subsidy may end for the rest. Let us tell you that this scheme was started by Prime Minister Narendra Modi in 2016 to provide LPG connections to below poverty line families. In India, there are about 8.8 crore under the Ujjwala scheme out of more than 29 crore LPG connections.
Where is the subsidy stopped?
A worldwide lockdown was imposed in 2020 due to the corono virus epidemic. Falling crude oil prices at that time helped the Government of India on the LPG subsidy front. With effect from May 2020, LPG subsidy has been stopped in many areas except remote areas and customers away from LPG plants.
How much does the government spend on subsidies?
The central government spent Rs 3,559 crore on LPG subsidy during the financial year 2021. At the same time, in the financial year 2020, this expenditure was Rs 24,468 crore. This expenditure has been done under the DBT scheme. It was started in January 2015, under which customers have to pay the full amount for non-subsidized LPG cylinders. At the same time, the subsidy money is refunded to the customer’s bank account on behalf of the government.
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