Huge Subsidies have been taking a heavy toll on Country’s economy for a long time. Governments have neglected cutting down them due to the pressure of alliance politics. But the country has given BJP a clean majority and Modi is now planning to cut down the subsidies and steady the economy. Already Modi hinted about few harsh decisions coming up and it is evident in the hike of Railway charges recently.
And now Modi is eyeing on fuel prices which forms the major chunk of subsidies. Modi will leave the Petrol prices to the wishes of Petroleum companies. Diesel subsidy will be lowered with the existing 50 Paise increase every month. And on the other side, government is thinking on the lines of cutting down subsidy on LPG gas by increasing 5 rupees every month and on Kerosene by increasing 1 Rupee every month.
