Saturday, March 21, 2015
by
Indian Real Estate News
1 A subsidy is the amount spent by the government to provide goods and services at prices that are lower than the market rates as a welfare measure.
2 Subsidies ensure equitable availability of essentials to low income groups and encourage higher consumption or production of certain products.
3 Subsidies represent a sizeable government expenditure. In India, food, fertilizers and fuel subsidies are estimated at `2.5 lakh crore per year.
4 Subsidies can distort both supply and demand. Producers may be unwilling to increase supply if they are unhappy with the price the government pays.
5 Consumers may not adjust behaviour if subsidies make goods cheaper. Investment in public transport may have been hurt by fuel subsidies that help private transport.
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7.Canara Robeco Equity Tax Saver
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