Cut energy, fertiliser subsidies to make up for food security : Montek

Subsidised services will lead to cutting down development initiatives

Just weeks before the union Budget, Planning Commission deputy chairman Montek Singh Ahluwalia today said that a situation needs to be created where energy and fertilizer subsidies have to be squeezed to provide for the ambitious Food Security Bill.

"Everybody agrees that the fiscal deficit needs to be brought down to 1.4% of the GDP in the terminal year of the 12th five-year plan from the current levels of 2.4% of GDP. But, at the implementation level, Food Security is bound to take up top priority and thus creating a clear-cut situation where energy and fertiliser subsidies need to be squeezed," Ahluwalia said while addressing a conference of the Planning Commission with state Planning Boards.

The deputy chairman said that the present system of subsidised services is not sustainable and will lead to cutting down development initiatives.

"States need to priorities their plans in view of changed circumstances," Ahluwalia said.

The deputy chairman also said scrutiny of government decisions is creating a environment where decision making is getting difficult. "At the political level steps like Cabinet Committee on Investments (CCI) etc has been taken. But there are issues with PPP in social sector," Ahluwalia said.

On the controversies surrounding data and its implications, Ahluwalia said that a recent report of 'Pratham' showed that despite investment in education, there has been little improvement in outcome measures and another area of poor performance is malnutrition, while has also been highlighted by the Prime Minister.

"Government studies and studies done by private agencies show contrasting pictures," Ahluwalia said. Meanwhile, states in there presentations during the meeting highlighted the achievements made under various development schemes in sector like health, education, skill development, power etc.