Q.2 Technically, a subsidy is the unrecovered cost of any service (or good) provided by the government. What are the purposes served by the subsidies and what are the issues with it? Suggest the way forward. (10 Marks)

Mentor’s comment- https://indianexpress.com/article/opinion/columns/pms-revdi-remark-we-need-to-disentangle-good-subsidies-from-bad-8043837/ In the intro, mention that there has been debate over the culture of political populism and freebies in India. In the body, mention that certain subsidies are desirable as they serve the purpose of benefiting society with positive externalities and the recipient of subsidies. In the issues mention fiscal stress induced by … Continue reading Q.2 Technically, a subsidy is the unrecovered cost of any service (or good) provided by the government. What are the purposes served by the subsidies and what are the issues with it? Suggest the way forward. (10 Marks)