Can govt’s targeted welfare override inflation concern? - News Summed Up

Can govt’s targeted welfare override inflation concern?


Such an approach also raises an important question vis-a-vis India’s political economy landscape today: can such targeted welfare benefits compensate for a weak macroeconomic performance? Elections are hardly fought on one issue and final results are also a reflection of the organisational prowess of the participants. While the Ujjwala scheme has been remarkably successful in expanding LPG coverage in the country, the jury is still out on whether it has really achieved an effective transition to clean fuel-based cooking. According to a ministry of petroleum report, LPG coverage (defined as active domestic LPG connections of PSU OMCs divided by estimated households) increased from 56% on April 1, 2015 to 99.8% on April 1, 2021. Consumer sentiment remains at the weakest ever levels, inflation is expected to be high going forward and inequality has likely increased significantly.


Source: Hindustan Times August 10, 2021 23:26 UTC



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