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Govt Gives away Rs 37,478 Cr Petroleum subsidy for 2019-20

The subsidy given for the year 2018-19 was Rs 24833 Cr, however, govt claims to save an estimated Rs. 59,599 crore up to March, 2019 under the PAHAL (Pratyaksh Hanstantrit Labh) or DBTL (Direct Benefit Transfer of LPG(DBTL) scheme of the MoPNG
New Delhi: Government has saved Rs. 59,599 crore up to March 2019 by the elimination of 4.23 crore duplicate, fake/non-existent, inactive LPG connections under the Direct benefit transfer of LPG scheme. The scheme is also known as PAHAL(Pratyaksh Hanstantrit Labh) which was originally launched on June 1, 2013. It basically required the consumer to mandatorily have an Aadhaar number for availing LPG Subsidy. Modi government's #GiveItUp campaign too played a substantial role in achieving these figures.

PAHAL and #GiveItUp saved Rs 59,599 Crore

Union Finance and Corporate Affairs Minister Nirmala Sitharaman informed Loksabha on Friday that 4.23 crore duplicate, fake/non-existent, inactive LPG connections have been eliminated under this DBT scheme. Under the ‘PAHAL’ scheme, beneficiaries buy LPG cylinders at market rate and subsequently received subsidy directly in their bank accounts. Direct Benefit Transfer is a landmark initiative of the Government to ensure that benefits under various welfare and subsidy programmes of the country reach eligible and rightful beneficiaries. The document states that in addition, there are 1.86 crores non-subsidised LPG consumers, including 1.03 crore ‘Give it up’ consumers.

Whopping subsidy of Rs. 37478 Cr in FY-20

The Budget Estimates provide an amount of Rs. 37478 crore as Petroleum subsidy for 2019-20, compared to Rs. 24833 crore in revised estimates of 2018-19. Out of the above, Rs. 32989 crores are earmarked for LPG subsidy while Rs. 4489 crore have been allocated for kerosene subsidy