Scribd
Upload
44 views17 pages

Presentation ARJAV M K

This document discusses different types of government subsidies in India, including their potential benefits and drawbacks. It addresses agricultural subsidies that help poor farmers access fertilizers, educational subsidies that increase access to higher education, and fuel subsidies that reduce transportation costs but primarily benefit the rich. While subsidies can promote important social goods, the document notes they can also encourage inefficiency, overconsumption of resources, higher taxes, and less government spending on development if not properly implemented and controlled based on need. Overall, the conclusion is that subsidies can be good or bad depending on how they are administered and who they actually help.

Uploaded by

Nidhin M
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
44 views17 pages

Presentation ARJAV M K

This document discusses different types of government subsidies in India, including their potential benefits and drawbacks. It addresses agricultural subsidies that help poor farmers access fertilizers, educational subsidies that increase access to higher education, and fuel subsidies that reduce transportation costs but primarily benefit the rich. While subsidies can promote important social goods, the document notes they can also encourage inefficiency, overconsumption of resources, higher taxes, and less government spending on development if not properly implemented and controlled based on need. Overall, the conclusion is that subsidies can be good or bad depending on how they are administered and who they actually help.

Uploaded by

Nidhin M
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 17

1

GOVERNMENT SUBSIDIES

GOOD OR BAD By
NIDHIN M
S1MA
Roll No:31
2 WHAT IS A GOVERNMENT SUBSIDY?

• A subsidy is a benefit given to an individual, business, or institution,


usually by the government.The subsidy is typically given to remove
some type of burden, and it is often considered to be in the overall
interest of the public, given to promote a social good or an economic
policy.
3
• Does India needs subsidies ?
• Who and all will it help ?
• Does it really help the poor or does it
it help the rich ?
• What are the needs of subsidies ?
• Where all subsidies are given ?
4
AGRICULTURAL SUBSIDIES
• Farmers are really blessed.
• Extra fertilizers are helpful for poor
farmers.
• Indira Gandhi green revolution.
helped in providing chemical
fertilizers.
helped in giving subsidies to
poor farmers.
5 EDUCATIONAL SUBSIDIES

• Educational subsidies

Subsidies in engineering education.

Famous govt college.

Examples in our society.

Medical college fees compared with

private medical colleges.

Increased admission in foreign countries.

Lack of education for poor.


6 VEHICLE SUBSIDIES
• Fuel subsidies.
• Helps the rich with multiple cars.
• The poor has no cars so no benefit.
• Subsidiesed fuel helps in reducing the cost of transportation.
• Helps in reducing costs of public transport.
7

• Increase in consumption of diesel.


• State owned oil companies incurred a loss of
40,500
• Current fuel subsidy is 26℅ of the overall subsidy.
8

• When the prices go high people start avoiding the product.


• The demand reduces and the cost goes down.
• Subsidiesed products will be in great demand.
• People are not able to feel the heat of high cost.
• The demand of subsidiesed products go uncontrollable.
9

• Subsidies defeat the concept of demand supply balance.


• Government pays subsidies from tax paid by citizens.
• High government subsidies means high tax payment.
• Tax are paid for development of the country not for subsidies.
• Increased subsidies means increasing tax and low government
spending
and low development.
10

• More government subsidies means less development.


• Less development leads to
Poor public facilities.
Poor management.
Poor drinking water system.
Poor drainage management.
Poor electricity. Etc.....
• Leads to poor government functioning.
• Leads to poor economy.
11

FOOD SUBSIDY.

• Food security bill.


• Estimated budget of 1.23 lack crore rupees.
• Budget 77,740 crore as food subsidy.
adding 25,000 crore to food subsidy annually.
12

• Subsidy promoting inefficiency.


• Defeats environment.
• Overuse of resources.
• Overuse of fertilizers by farmers.
13
ECONOMIC EFFECTS.

• Shift in demand curve.


Increase in demand of every product
Less MRP leads to more demand.
• Shift in supply curve
due to more demand of products, more
supply is required.
14
• Protectionism
Government actions or policies that
restrict
international trade.
Protecting local businesses and jobs from
foreign countries.
They do it by cutting subsidies and
providing
tax to the foreign offers.
15

NOW IS IT GOOD OR BAD.

• It depends on the users.


• Subsidy should be maintained properly.
• Subsidy should be implemented according
to the annual income.
• Subsidy should be implemented seasonly.
• Subsidy without control leads to economic disaster.
THANK YOU

You might also like