Will rural households be the primary target for LPG subsidies


According to The Economic Times, the government is set to allocate Rs 9,000 crore for the LPG subsidy under the Pradhan Mantri Ujjwala Yojana (PMUY). Prime Minister Narendra Modi’s administration has placed significant emphasis on providing subsidies through the Ujjwala Yojana scheme, particularly benefiting women. The Rs 9,000-crore subsidy will be provided to Oil Marketing Companies (OMCs) to distribute subsidized LPG.

In the interim budget for 2024-25, Finance Minister Nirmala Sitharaman projected a total fuel subsidy outlay of Rs 11,925 crore. This figure is nearly the same as the revised estimate for 2023-24 and higher than the previous fiscal year’s budgeted estimate. The increase in subsidy is primarily due to the extension of a cooking gas subsidy of Rs 300 per cylinder to about 96 million low-income households, ahead of assembly elections in five states.

On March 7, just before International Women’s Day, the Union Cabinet approved a targeted subsidy of Rs 300 per 14.2 kg cylinder (and proportionately for 5 kg cylinders) for up to 12 refills per year for PMUY beneficiaries during FY 2024-25. The total expenditure for this subsidy is expected to be Rs 12,000 crore. The subsidy will be directly credited to the bank accounts of eligible beneficiaries, as outlined in an official document released by the Cabinet.

Prime Minister Modi has emphasized the focus on four major groups: farmers, women, youth, and the poor. In the interim budget for 2024-25, Finance Minister Sitharaman announced plans to increase the target of women beneficiaries under the Lakhpati Didi Scheme from two crore to three crore. She also highlighted the government’s previous schemes for women and the increasing participation of Indian women in the workforce and STEM courses.

Nirmala Sitharaman noted, "Female enrolment in higher education has increased by 28% in 10 years. In STEM courses, girls and women make up 43% of enrolment, one of the highest in the world. All these steps are reflected in the increasing participation of women in the workforce. Making triple talaq illegal, reserving 1/3 seats for women in Parliament and state assemblies, and having over 70% of houses under PM Awas Yojana for women have increased their dignity."

The government also plans to promote cervical cancer vaccinations for girls aged nine to 14. "Our government will encourage vaccination for girls in the age group of 9 to 14 years to prevent cervical cancer," said the Finance Minister. Despite previous controversies in 2010, when trials of HPV vaccines faced setbacks due to reported deaths, the government is proceeding with this health initiative.

Additionally, healthcare coverage under the Ayushman Bharat scheme will be extended to all ASHA and Anganwadi workers and helpers. Addressing gender parity and uplifting women's lives remain central to the budget’s focus. "We need to focus on - Garib, Mahilayen, Yuva, and Annadata; their needs and aspirations are our highest priorities," Sitharaman emphasized in her interim Budget speech.

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