ISSN (Online) - 2349-8846

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Questioning the “Phenomenal Success” of Aadhaar-linked Direct Benefit Transfers for LPG

The Aadhaar-linked Direct Benefit Transfer scheme for reducing leakages in Liquified Petroleum Gas (LPG) subsidies has been widely advertised as a phenomenal success and has been used to promote Aadhaar and DBT in other spheres by prominent government officials. However, analyses of various studies and data shows that the government’s tall claims of savings cannot be confirmed and leaves much to be questioned. 

Deconstructing Government's LPG Subsidy Savings Claim

The Comptroller and Auditor General report on the implementation of PAHAL, India's ambitious direct benefit transfer for LPG scheme, debunks the government's exaggerated subsidy savings claim. To improve the efficacy of the subsidy delivery mechanism and curb diversion of subsidised domestic LPG to the black market, the government should take serious note of the recommendations made in the CAG report.

Inflation with Disinflation?

Price inflation in India as measured by the Wholesale Price Index and the Consumer Price Index has shown diverging trends. While WPI indicates a disinfl ationary situation for 16 months, CPI indicates inflation. Explaining the construction of the two indices, the trends of subgroups of both indices are presented. It is found that the different sample sizes and weightages of commodity groups of both indices and price interventions in the market explains, at least in part, this odd situation of infl ation along with disinfl ation.

From LPG Connections to Use

The Pradhan Mantri Ujjwala Yojana, to provide concessional LPG connections, is a step in the right direction but much more needs to be done by 2019 and beyond to ensure homes in India cook using modern fuels. This article explores the issues of providing connections, subsidy provisioning and ensuring sustained use of LPG and other modern fuels, so as to displace solid fuels from Indian kitchens. It also highlights the need for planning for increased demand and addressing institutional gaps to ensure that the benefits of modern fuel adoption, especially health benefits, are realised.

Budget 2016: Behind the Symbolism

The Modi government tries hard to signal a makeover but beyond the symbolic it does not change much.

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