After the initial experiment in food and fertiliser, better targeting of kerosene subsidy is next on government agenda to plug diversion and black marketing of the fuel, Finance Minister Arun Jaitley said.
"Kerosene in some parts of the country is used as fuel, and in many parts... Is misused. There is a huge amount of diversion... So, states are making efforts to become kerosene free because of a lot of diversion taking place," he said at an event of the Observer Research Foundation here today.
He specifically made a mention of Union Territory of Chandigarh and Haryana trying to become kerosene free.
"That's one of the next items which is on the agenda as far as rationalisation is concerned, but there is still a section of society which uses kerosene as a fuel and therefore, you have to find a mechanism (as to) how to deal with the kerosene problem," he said.
With an aim to take PDS kerosene to the targeted beneficiary, it has been decided to implement the direct benefit transfer in kerosene (DBTK) in 39 districts in 2016-17. The districts spread across nine states have been identified in consultation with local governments, including Punjab, Gujarat, Himachal Pradesh, Madhya Pradesh and Chhattisgarh.
Giving examples of on-boarding of various government schemes on DBT, he said the government is now experimenting in various areas.
"Somewhere fertiliser is being experimented, somewhere food... One of the the great advantages would be to plug leakages, eliminate corruption and duplicacy and better targeting of subsidy," Jaitley added.
It helps the government reach the targeted section more effectively and save money in the process that can be used for social programmes or alternatively, other developmental activities, he said.
"We are in the initial stages of various areas of implementation and I think the apprehensions which existed a couple of years ago have been to a large extent adequately addressed. Direct payment through this whole process of identification is slowly going to become the rule and not resorting to it would be an exception," he said.
"The whole idea is that in reaching the weakest section, the leakages takes place and only a small fraction reaches the targeted entity, and I think we will be able to get over that curse.
The finance minister said that though the initiatives
by the central government might appear challenging, its long-term impact will be beneficial for the economy.
The informal economy will take the shape of a formal one and the state would get more revenue since there would be no leakage, the minister pointed out referring to the impact of GST.
"This will boost trade and commerce which in turn will help people at large," he said.
He spoke of states like Odisha that are in line for better infrastructure, health and education through much higher allocations, adding that the chief minister's initiative to transform the state as a manufacturing hub could be better realised through the reforms of the central government.
The Centre will fully support the state in its 'Make In Odisha' campaign, Jaitley promised.
While lauding Odisha's growth rate, which remained about 9 per cent, Jaitley said: "The state has both challenges and assets. While poverty and huge tribal population are a challenge for the state, Odisha is rich in mineral resources, besides a long coastline."
He, however, noted the state government has been able to reduce poverty to a large extent.
"The growth rate of Odisha in recent years has significantly improved. The poverty level has also come down. And one of the great challenges is its growth rate must continue to expand," Jaitley added.
"As far as percentage of manufacturing as part of the GDP is concerned, in Odisha, it is higher."
Jaitley also drew attention to the combination of manufacturing and stress on agriculture that could pay dividends. He unveiled Odisha government's master plan on port-based manufacturing hub.
