Direct Benefits Transfers

LPG subsidy savings

  1. The Centre saved over Rs.21,000 crore in LPG subisdy in the last two financial years
  2. Reason: Direct Benefit Transfer- paying subsidy directly into bank accounts of actual users
  3. This helped eliminate duplicate connections as well as diversions
  4. Data: DBT for LPG started in select districts from November 2014 and in the rest of the country from January 1, 2015
  5. As on April 1, 2015, there were 18.19 crore registered LPG consumers and 14.85 crore active consumers implying a gap of 3.34 crore consumers which were duplicate, fake or inactive
  6. Saving: Eliminating such fake consumers helped save Rs.14,672 crore in 2014-15 fiscal
  7. The saving in 2015-16 was about Rs.7,000 crore, lower than the previous fiscal because oil prices slumped, cutting the subsidy required

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