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Subsidies a concern, action on diesel prices required

SUBSIDY: Major subsidies extended by the government are likely to jump to Rs 1,34,411 crore during 2011-12

The Survey has warned of deteriorating fiscal health due to a mounting subsidy burden. The huge outgo over the past year has been largely on account of the global rally in crude oil prices, the fertiliser subsidy and state-controlled foodgrain prices, it said. It also blamed ‘coalition politics and federal considerations’ for holding up economic reforms on several fronts. Major subsidies extended by the government are likely to jump to Rs 1,34,411 crore during 2011-12 as compared to the Rs 1,31,212 crore of 2010-11. The government had projected the subsidy to GDP ratio to remain ...