In a move to reform oil sector government is taking various initiatives to rationalise and reform the subsidy sector. The cooking gas LPG has been accorded one of the highest priorities by initiating new reforms like DBT (Direct benefit transfer), Give it up campaign, and New scheme known as Pradhan Mantri Ujjwala Yojana. The article deals with the rationale behind this scheme and how it can be game changer as a whole.
The reform in LPG sector is a much awaited progression for the weaker sections of the society. It is disheartening to know that in the world over 4 million people die of breathing problem caused due to use of firewood and among them over half a million people die in India. Women and children are the most affected persons from the use of firewood. It is a welcome step that government is planning to issue free LPG connections to people of poor background so that they lives are improved by preventing socio economic burden which they otherwise going to face.
This scheme can make a remarkable difference by empowering women and other BPL families who cannot afford the LPG gas connections. A woman who is involved in managing most of the brunt by bringing firewood to cook food or other stuff can be relieved in some way. The health of the women and children will be promoted through the use of gas connections.
Another reform that equally deserves applaud is Give it scheme. It is truly a social revolution that is happening in the country. More than one million people have given up there subsidy voluntarily since the “Give it up” initiative started. With this it is possible that government can use these voluntary resources for synergising other schemes that are cash strapped or require more funds.
The DBT scheme which aims to directly transfer the subsidy to the beneficiary is another great initiative that is truly innovative and successful. Linking the beneficiary’s bank account to his aadhar number has prevented pilferage, avoided middlemen, and target subsidy to the original beneficiary, India which closely spends nearly 4 percent of its GDP in giving subsidies; the DBT scheme has been revolutionary in channelizing these precious resources to empower people.
Finally the reform that the government is initiating for rationalising the subsidy is paying returns. The proper checks and balances that are present in the system inherently eliminate all the defects which arise. The ultimate motto of the subsidy which is to empower people will be ensured only if the poorest of the poor gets a fair shot in the mainstream society.
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