MINISTER OF THE STATE IN THE MINISTRY OF FINANCE (SHRI NAMO NARAIN MEENA)
(a) to (h): The National Common Minimum Programme (NCMP) of the UPA Government in 2004 mandated
the targeting of all subsidies to the poor and truly needy sections of the society. In pursuance
of this mandate, Government had submitted a report on subsidies to the Parliament on December 23,
2004. Discussions were held with stakeholders in May 2005 and comments of public were invited in
June 2005. There was never any proposal for elimination of subsidies. Having regard to the needs
of poorer sections, the levels of prices and the subsidy outgo, some specific announcements
relating to major budgetary subsidies were indicated in the Budget for 2009-10, which included:
National Food Security Act with the objective of providing every family living below the poverty
line in rural or urban areas, an entitlement of 25 kilos of rice or wheat per month at Rs.3 a
kilo; the intention to move towards a nutrient based fertilizer subsidy regime and the intention
of the Government to set up an expert group to advise on a viable and sustainable system of
pricing petroleum products. No specific time schedule has been indicated for the
operationalisation of the above.
