TaxTMI 
TaxTMI 
TaxTMI 
Free or subsidies supply need to be restricted but must be balanced:
Free or subsidised supply is a support from government to weaker section of people and this comes out of taxes paid by poor people themselves , people who are just above poverty level, lower and upper middle class and rich people all on goods and services availed by them. Income-tax is paid by people who are earning income above exemption limits. Thus, in subsidies even the poor people have their contribution while they purchase and avail goods and services.
No doubt our endeavour should be to uplift poor people and not to make them dependent on government subsidies or other charities. Therefore, there is a need to keep free or subsidised supply in a restricted and balanced manner, particularly in respect to consumables. If total requirement is met freely, then there is possibility of damaging eagerness to work and earn.
However, restricted and balanced manner should be in reasonable so as to provide a reasonable quantity free and / or at concessional price.
COVID 19 and landlocked poor people:
As we observe that many poor people are out of job / working. Many of them depended on daily earnings. That source of income has come to a halt. To provide relief to such poor people government has announced relief measures. As per Press Reports the FM has announced various relief. one of relief being discussed in this write-up is:
Distribution of 5 kg of wheat or rice and 1 kg of preferred pulses free-of-cost every month over the next three months to the 80 crore poor across the country.
The said free supply will be in addition to sale of food grains, pulses, kerosene etc. at concessional price through PDS under the National Food Security Act or other schemes. This is a temporary measure due to problems caused by COVID 19 and resultant LOCKDOWN which has now been extended to 3rd May,2020.
Concessional supply:
Concessional supply is at substantially reduced price for poor people and at some concession to middle class of people. There are restriction on quantity per head/ per family for different items. There are differences in various states under different schemes as well. Details could not be found on various websites including https://pdsportal.nic.in/Default.aspx?lid=30
And websites of some governments of states. This is because some pages could not open and in some cases there is no information or link about ration entitlements.
On enquiry from few ration card holders in Kolkata and nearby area it has been gathered that quantity of rice and / or wheat provided under PDS is in range of 2 to 5Kg per person per month. Different prices are charged from people in different category based on income criteria.
Therefore quantity of food grains and pulses distributed through PDS is also not sufficient for example in West Bengal maximum quantity is 5Kg per month per person for BPL people.
Question with my observations, I posed in my message to some people in my contacts was:
My observations: It seems that our ministers think from their perspective only. We know that with increase in income, consumption of many new items add in daily menu. For example for poorest even grains and salt, then with increase in income comes daal, pyaj, some vegetables , milk, fruits, meat, milk products, outside eating, dry fruits..., Etc. For poor people to whom free grains and dall is targeted, I think quantity is not sufficient. When other costly items are lacking, more grains and pulses are required.
Consumption also depend on appetite and that depend on how much hard work is done, how many hours you are awake and working etc.
For these reasons also poor people need more food grains.
6kg a month means just 200 / 193 gms. Per day. This is not enough even for rich people who consumes many more items.
Q: 5+1 kg grains and pulses for poor people- is that sufficient?
Q .Do you think that quantity should be increases?
Please indicate your estimate for a reasonable quantity of grains and daal per day for poor people.
Unfortunately responses were poor and / or lacking.
As per one Company Executive looking after purchases for sugar Mills and Tea estates:
“Your comments are very reflection of mind set of upper class or ruling elite. In my opinion if one family we consider of 4 persons then a minimum per week should not be less then 20 kg plus 4 kg,without any doubt.
So in his view 20 + 4 kg should be per month per person.
As per a very senior Advocate:
I have no idea! What you say may be correct. But Government has limited resources and may not be able to meet even bare minimum needs of poor people. Some minority communities have uncontrolled families of 35-50 members !
Charitable societies and organisations are trying to take care.
My observations:
As discussed arlier, for poor people saying is “DAAL ROTI KHAO, PRABHU KE GUN GAO”. Means if you get dal and roti ( add bhaat Rice) , then it is enough .
20 +4 Kg. means 24 kg will amount to 800 gms per day ( let us assume one go on fasting for one day in a month).
Free distribution is 6 kg (for three months only) and Concessional foods to poor is 5 Kg per month. This gives total 11 Kg. means 366 gms per day.
This is less than 50 % of requirement.
Concessional quantity should be increased:
By keeping a reasonable balance theory also it is clear that concessional sale of food grains to poor people should be increased. 5 Kg per person per month is much less than desired. To promote urge to work , at least 50% requirement of poor people should be met at concessional price. Therefore, grains 10 Kg and pulses 2 Kg per person should be provided at nominal price.
For senior citizens above 65 years, and incapacitated poor persons this should be free.
Cases to be debarred from free or subsidised supply:
People living in pucca houses (say 100 sq. ft per person) with regular earning can be debarred:
At present poor people includes many people in villages and cities who are really not poor who need to be provided free of subsidised food. People living in pucca houses ( say 100 sq. ft per person) and having regular source of monthly income of ₹ 7500/- per month/ ₹ 90000/- per year must be debarred from free and/ or subsidies food grains and pulses.
Similarly farmers having land holding above certain limit (depending on irrigated or not, productivity, marketability of product etc.) must be debarred from free or concessional food grains.
Alcohlic / Piyakad
Any family having alcoholic / puiyakad member must be debarred from free and concessional food grains and pulses. This is because of habit of alcohol drinking is main reason for being poor. The earning are wasted in drinking alcoholic products and due to alcohol consumption they work less.
Similar other criterion should be explored to find out undesirable people availing subsidies.
Self-esteem must work:
It is desirable that people must improve their self-esteem and must consider subsidies as charity, daan, daya and an obligation. This can be done through teaching self- reliance , self-esteem, fiscal independence etc. in primary classes. Unfortunately our trade, industry and service sector is ready with DAAN PATRA and praying and requesting for help by way of subsidies and concessions from governments. Why they do not try to bear and / or make up loss of three- four months due to COVED 19 when they have earned over a long period of time.
Only with improvement of self-esteem and moral of people, we can reduce subsidies over a long period of time. Because habit of availing subsidies is deep rooted.