CAG said, it is very important to differentiate between free hawkers and fair subsidy

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New Delhi : The country’s Comptroller and Auditor General (CAG) Girish Chandra Murmu said that it is necessary to differentiate between proper subsidies and freebies. Along with this, he advised the states to meet their capital expenditure from their own revenue sources. Speaking at the one-day annual Accountant General’s Conference, Murmu also emphasized that states should take steps to maintain proper accounting of subsidies. He said that prudent measures should be taken to reduce the fiscal deficit, eliminate the revenue deficit and keep the outstanding debt at an acceptable level.

Subsidy necessary to help the underprivileged

According to CAG Girish Chandra Murmu, states should meet their capital expenditure, including loans and advances, from their own sources of revenue. At least the net debt should be limited to its capital expenditure. He said that we understand the importance of subsidy to help the underprivileged and it is necessary to have a transparent account for such subsidy. Also, we need to differentiate between fair subsidies and freebies.

difference between subsidy and freebies

Let us tell you that there is a subtle difference between the literal and the original behavior of subsidy and freebies. Before the elections, political parties promise to provide services and goods free of cost to the voters. The way political parties promise free gifts, they have been kept in the category of freebies. At the same time, subsidy is also known as Rajsahayata or government assistance, which is generally a benefit given by the central or state governments to poor and deprived citizens, business related to social welfare, educational or health institutions. Usually it is given by paying in cash or by reducing the tax.

Supreme Court has also commented

In the month of August last year, the Supreme Court had made many important comments while hearing on free raves. At that time, the Supreme Court had said that there is a need to discuss this issue, because it is a matter of the welfare of the country. The court said that there is a need to differentiate between welfare schemes and the promise of free hawkers by political parties to the public during elections. The Supreme Court clearly said during the hearing that all the parties including the Bharatiya Janata Party (BJP) are looking the same on the free hawkers.

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