Winning Bizness Desk
Government saves Rs 11,654 crore by removing LPG subsidy In 2021-22, Govt gave only Rs 242 Cr as subsidy
Mumbai. The Modi-led union government is gradually doing away with subsidies on LPG cylinders and by stopping this subsidy, it has deposited crores of rupees in its treasury. In 2020-21, the central government had spent Rs 11,896 crore as LPG subsidy, while in 2021-22 this expenditure has come down to just Rs 242 crore. In this way, by eliminating the subsidy, the government saved Rs 11,654 crore in just one financial year.
Govt appealed people to give up subsidy
According to the Petroleum Ministry, Rs 23,464 crore was spent on LPG subsidy in the financial year 2017-18, which reached Rs 37,209 crore in the financial year 2018-19. After this, the government appealed to the people to give up the subsidy and crores of customers gave up the subsidy on this appeal, due to which the government's expenditure in the financial year 2019-20 came down to 24,172 crores. In 2020-21, it declined by more than 50% and the subsidy outgo came down to Rs 11,896 crore. After this, this expenditure has come down to just Rs 242 crore in 2021-22.
Only Ujjwala scheme getting subsidy
In June 2020, the government had decided that subsidies on gas cylinders would be given only to the beneficiaries of Pradhan Mantri Ujjwala Yojana (PMUY). This has resulted in a drastic reduction in the number of people receiving subsidies. The government has introduced a subsidy of Rs 200 per cylinder for PMUY beneficiaries for up to 12 refills in a year. The subsidy on the cylinder is deposited in the bank account of the beneficiary.
Cylinder costlier by Rs 218.50 in 1 year
The price of domestic gas in Delhi on 23 July 2021 was Rs 834.50, which has now reached Rs 1053. That is, in the last one year, the price of domestic gas cylinders has increased by Rs 218.50. The subsidy on this has also been abolished. About 30 crore people in India have LPG connections. This includes more than 9 crore LPG connections under the Ujjwala scheme.
