All in all, what a confusing affair this is, It is not easy to understand him. to the economyhard work’ How is it handled and operated from-Harvard economist Can hardly understand.
Subsidy became a discredited term after the policy of neo-liberalism was adopted in the country. Prime Minister Narendra Modi came to the fore as perhaps the most vehement advocate of this policy, when he contested elections in 2014 with the slogan ‘Minimum Sarkar’. They have said many times that the government should be in business, it is not the government’s job. That is why the news is shocked that the Modi government will give a subsidy of 22 thousand crore rupees to the public sector oil companies. It has been said that from June 2020 to June 2022, these companies provided petroleum products to Indian consumers at a price lower than the international market price. The loss incurred due to this will now be compensated by the treasury. This is a big confusion. The decision to decontrol petroleum prices was taken many years ago. Decontrol simply means that the companies will sell the commodity to the consumers according to the price at which they will buy. That is, if the price increases in the international market, then everyone will have to pay a higher price. If the price drops there, then consumers will get the benefit of it. But the reality is that decontrol has proved to be a hoax. And for this the present government is directly responsible.
Because when petroleum became very cheap in the market, then to pass on its benefits to the consumers, their pockets were cut by increasing the excise. That series has not stopped. It is said that till the last financial year, the present government had earned an additional Rs 24 lakh crore from this policy. So was it not possible that the policy of decontrol would have been implemented honestly and the government would have reduced this tax to give relief to the consumers? but that did not happen. Now giving money to companies from the treasury also means that money is being taken out of the pocket of the common taxpayer. This is a double whammy on the taxpayers. Fiscal pressure also has an impact on inflation. So this fight will not stop here. Overall, this confusing affair is not easy to understand. How the ‘hard work’ based economy is being handled and run – even the ‘Economists of Harvard’ can hardly understand it.
