Open AccessA Critical Analysis of Government Subsidies in India – Special Reference to Non-Merit Subsidies
Author(s) -
Seema Sharma,
Mahendra Lomror
Publication year - 2022
Publication title -
research hub
Language(s) - English
Resource type - Journals
ISSN - 2349-7637
DOI - 10.53573/rhimrj.2022.v09i02.006
Subject(s) - subsidy , public economics , government (linguistics) , welfare , payment , economics , cash , marginal cost , business , social security , cash transfers , finance , microeconomics , market economy , linguistics , philosophy
Subsidy is a simple fiscal tool, obtainable to the policy makers, to assist promotes production, employment and social welfare. All countries, irrespective of their financial systems, have been using this tool, according to the objectives and conditions that exist in their personal economies. The taxes and subsidies, which are in strength are apprehensive with counteractive measures that could be instituted in theory to bring marginal private costs, or benefits, more closely into arrangement with marginal social ones. Subsidy refers to the concession given by the government to make accessible the important items to the public at inexpensive prices, which is frequently much below the cost of producing such things. Specific entities or those can collect these subsidies in the form of tax rebate or cash payment. This helps to keep necessary items such as food, fuel, fertilizers within the reach of deprived people.