Post the electoral drubbing it received in last month’s assembly elections in four key states of Delhi, Rajasthan, Madhya Pradesh and Chhattisgarh - the Government on Thursday indicated that it will “look into” the demand to raise the quota of subsidised lPG cylinders to 12 per household in a year from the current limit of nine.
“There is a request that the subsidised cylinders be increased from nine to 12...It came from several chief ministers,” Finance Minister P Chidambaram told reporters after the Union Cabinet meeting.
The Pioneer had first reported about the Government seriously mulling the option as a move to counter some damage to its image post the pasting it had received at the hustings last month.
The hint came a day after the price of non-subsidised lPG cylinders was increased by a steep Rs 220. There have also been demands to roll back the hike of Rs 220 per cylinder of non-subsidised cooking gas (lPG), which customers buy after consuming their quota of nine subsidised cylinders.
Each non-subsidised 14.2-kg cooking gas cylinder currently costs Rs 1,241 in Delhi, about three times more expensive than a cylinder of subsidised lPG.
“I am not sure whether the Petroleum Ministry has actually operationalised the increase in price of non-subsidised cylinders. We will take a look both at the proposal (for a rollback in price) as well the demand from some quarters that nine subsidised cylinders should be increased to 12,” Chidambaram said.
With a view to cut its subsidy bill, the Government had capped the supply of subsidised domestic lPG cylinders to six per household in a year in September 2012. The quota was raised to nine bottles per household a year in January 2013.
Meanwhile even as the fiscal deficit has shown an upward trend, Chidambaram exuded confidence that it would remain within the target of 4.8 per cent of GDP in the current financial year.
“We will maintain the fiscal deficit at 4.8 per cent. That is the red line that will not be breached. I am confident that it will not be breached,” he said.
The minister was responding to a question about the possibility of the fiscal deficit rising after it touched 94 per cent of the budget estimate at the end of November.
Chidambaram said Government finances will improve in December and the fiscal deficit will decline. Advance tax receipts came in December and the General Financial Rules, which restrict expenditure, will come into play, he said, adding that they would have a positive bearing on the fiscal deficit.