Q.3 In India, governments have drawn on budgetary resources for providing support to low-income households for augmenting their consumption of selected goods and services, and also offering incentives to support selected categories of investors and producers. What should be services and goods covered under such schemes and what should be their modes of delivery? (10 Marks)

Mentor’s comment-
-In the intro, mention the debate over various schemes in India for their nature and purpose.
In the body mention need to limit subsidies and schemes to essential goods and services and also to merit goods and services. Next mention the issue of delivery of such services and goods. In case of production related incentives mention direct budgetary support and tax concession and need for limiting the misuse.
-Conclude by mentioning the need for placing the budgetary limit on such supports.
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2 years ago

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