Zero Poverty: Eliminate all Subsidies for Guaranteed Minimum Income


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.


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.


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