Government’s move to block cooking gas subsidy to higher income groups is a step in the right direction and is expected to get a thumbs up from the common man. The Income Tax department will soon begin sharing data with the Oil Ministry like PAN, residential address and mobile number of a taxpayer earning over Rs 10 lakh per annum, as part of the government's initiative to effectively block subsidised cooking gas to taxpayers with annual income of more than Rs 10 lakh.
While the self-declaration initiated by Prime Minister Narendra Modi titled 'Give it Up' campaign was a first step towards subsidy management, the current decision to share I-T data will help in tracking those from the affluent section who still continue to benefit from the subsidy. The tax data with the Oil Ministry will ensure that all those who have income above Rs 10 lakh per year will automatically be barred from getting subsidised cooking gas cylinders. The idea behind saving on subsidy is to provide clean fuel to poor households still dependent on unhealthy fuels such as firewood or cow-dung cake for cooking. At present, all households are entitled to 12 cylinders of 14.2 kg each at subsidised rates.
With LPG subsidies being rationalised, the government should next focus on subsidies in other areas like kerosene and urea. More than rationalising the subsidy, directing the subsidised resources to the right beneficiaries is a prime concern. The gross mishandling of the subsidy has severely hit the finances and have also not done any good to the welfare of the poor.
