Cut fuel, fertiliser subsidies, says Amartya Sen

NEW DELHI: The government should lower its fuel and fertiliser subsidies and channelise the money to ensure food security, Nobel laureaute Amartya Sen on Monday said.

"I think we have to cut fuel subsidy. We have to cut even fertiliser subsidy. So the key thing... is more taxes and fewer subsidies on what money is ... going to people who already have. Take that money (and) provide food security," Sen said in an interview to TV

For the current fiscal the government has earmarked Rs 75,000 crore on account of food subsidy. The outgo on account of food subsidy given to run the public distribution system was Rs 72,823 crore in 2011-12.

In the current fiscal, the government has pegged the fertiliser subsidy at Rs 60,974 crore, lower than Rs 67,199 crore in 2011-12. Fuel subsidy outgo has been pegged at Rs 43,500 crore for the current fiscal, lower than Rs 65,000 crore last year.

Under the fertiliser subsidy, the government would provide Rs 13,398 crore for imported urea, Rs 19,000 crore for indigenous (urea) fertilisers, and Rs 28,576 crore for the sale of decontrolled fertilisers (DAP, MOP and complexes) at a subsidised rate to farmers.