News APP

NewsApp (Free)

Read news as it happens
Download NewsApp
Home  » Business » Subsidies for poor to continue: FM

Subsidies for poor to continue: FM

Source: PTI
January 12, 2007 14:45 IST
Get Rediff News in your Inbox:
Ahead of the Budget, Finance Minister P Chidambaram on Friday ruled out withdrawal of subsidies to the poor and said the country has to sustain high growth rate for at least ten years to wipe out poverty.

The government will continue to support poor and weaker sections of the society by way of subsidies, he said. "This is necessary... it is your money, taxpayers' money, by which we would continue to support the poor," he said.

Citing examples, he said for every litre of kerosene sold at Rs 9 per litre, the government provides subsidy of Rs 14. Similarly on domestic LPG, the subsidy is Rs 155 per cylinder.

Indian economy has grown by eight per cent over the four years, he said, adding, "But I am not satisfied. We must grow at 8 per cent and more for at least next 10 years."

"If we maintain 8 per cent and more growth up to 2020. India will become economic powerhouse and third largest economy in the world and poverty will be wiped out," he said.

Hong Kong, Singapore, Thailand and Malaysia maintained high growth rate for 10 years in the 1980s, while China has shown appetite for high growth rate on a sustained basis since the end of 1980s, he said.

"This is our charm... this our turn. We seem to have got on the high growth path and if we remain so for next ten years we will be able to wipe out poverty," he said.

Get Rediff News in your Inbox:
Source: PTI© Copyright 2024 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.
 

Moneywiz Live!