ProMASS News Bureau: Feb 26, 2016:
Chief Economic Advisor Arvind Subramanian has said there is a need to rationalise fertilizer subsidy and its disbursal should shift to Direct Benefit Transfer Scheme, DBT. Mr Subramanian said, introduction of DBT in LPG and MGNERGA have been a big success. He said it has proved that use of Jan Dhan Aadhar Mobile, JAM can considerably reduce leakages and lower corruption. Addressing a press conference on Economic Survey 2015-16 this evening in New Delhi, Mr Subramanian said, 80 per cent of small farmers buy urea at prices greater than MRP and pay 50 per cent greater than administered price.
The Chief Economic Advisor said, it has been stated in the Economic Survey that the case for implementation of direct transfers in fertilizers will reduce leakage of the fertiliser to the black market. He said, the Survey has expressed concern over approval of GST Bill being elusive so far, the disinvestment programme falling short of targets and the next stage of subsidy rationalization being a work-in-progress. He also said that subsidies worth more than 1 lac crore which mainly benefit the well off sections of society need to be rationalised.
Mr Subramanian added that corporate and bank balance sheets remain stressed, affecting the prospects for reviving private investments. He said, Recognition, Recapitalization, Resolution, and reform are required to comprehensively resolve the balance sheet challenge of Public Sector Banks and some Corporate Houses. He said that the proposed bankruptcy bill and other majors would be an important step in helping the exit of companies whose assets and balance sheets are stressed.
Mr Subramanian said, currently power tariff schedules are complex therefore there should be a single power tariff across the country to make India one market power. The Chief Economic Advisor said, the ratio of tax payer to voters is four per cent, which should be 23 per cent for the country at its level of economic and political development.
In the agricultural sector,Chief Economic Adviser said that Indian agriculture has done well in the production of cereals but now attention needs to be shfited to production of pulses and integration of agricultural markets to reduce the gap betwee farm gate price and actual price paid by the consumers.
Mr Subramanian also said, economic survey highlights that low cost maternal and early life health and nutrition programmes offer very high returns on investments. He said, investments in maternal, nutrition, sanitation and enhancing their effectiveness by changing social norms can help India exploits it demographic dividend.
He said that despite a grim international situation, India would achieve a growth rate of 7-7.75 percent in the fiscal year 2016 while the consumer inflation is likely to be in the range of 4.5 to 5 percent.
