Zero Poverty: Eliminate all Subsidies for Guaranteed Minimum Income

Friends,

The government in India spends a massive amount of money on subsidies. For the central government alone, subsidies on various sectors amount to ₹2,50,433 crores in 2015-16 allocation. We can assume a similar spend by all the state governments combined. It is well known that some of this money gets siphoned off (up to 90% by some estimates). Also it leads to a nanny state where the government decides which services and products the people need. The chart below shows that the three biggest areas of subsidies is food, fertilizer and petroleum.

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What is also known is that there are about 17.96 crore people below the poverty line defined by world bank. Assuming 5 members per family this amounts to almost 4 crore families. What if the central government decided to give all the subsidy money to these families? It will amount to ₹60,000 per family per year or ₹5,000 per month! Eliminating poverty at one stroke.

Cheers!

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