India’s subsidy racket

India’s subsidy bill is humongous. Food subsidy bill for the current fiscal is projected to be Rs 605 billion. Fertilizer subsidy during the year 2011-12 is expected to be Rs 500 billion. These are dwarfed by the fossil fuel subsidy of Rs.1200 billion that is cleverly camouflaged by pushing the major burden to India’s public sector oil marketing companies [OMC] who struggle to stay afloat even as global oil majors make super profits.

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