Govt Gift To Common Man, Raises The LPG Cylinder Level From 9 to 12, takes Rs 5000 crore subsidy hit

Cabinet committee of political affairs today approved the hike in the limit of subsidized LPG cylinder from 9 to 12 in a year. After this decision households will now receive three cylinders more at a subsidized rate in the current fiscal as this hike would be functional from February 1. At the same time government will bear an extra subsidy burden of Rs 5000 crore per year due to hike in this limit. 

Petroleum and Natural Gas Minister, M Veerappa Moily while briefing the media about the cabinet committee’s decision said that, till now Rs 80000 crore subsidy burden has been thrust upon the government for providing 9 subsidised cylinders, but now it will reach Rs 85000 crore. Important to note that congress Vice President Rahul Gandhi, during the recent AICC meeting, had requested Prime Minister Manmohan Singh to raise the bar of subsidised cylinder from 9 to 12 and today’s decision of Cabinet committee is being seen in that light.

Government has also put on hold the direct cash subsidy transfer to Aadhar linked accounts till further orders. This step of the government is being seen in the light of forthcoming parliamentary elections as this will provide great relief to middle and lower class citizens, particularly women.