Basu panel projects cut in subsidies in 12th Plan

A Planning Commission group, headed by chief economic adviser Kaushik Basu, has projected a sharp cut in subsidies in the 12th Plan. Against almost 103 per cent rise in subsidies in the XIth plan (2007-08 to 2011-12), one of the projections of the group scaled down subsidies to a 9.65 per cent rise to Rs 2.18 lakh crore in the concluding year of Plan from Rs 1.99 lakh crore in the first year of the plan. The group projects petroleum subsidy to rise 10.55 per cent. Non-plan expenditure is projected to fall from 9.19 per cent of GDP in 2012-13 to 7.31 per cent in the final year.