SC: Economy can’t survive on subsidies
The economy is in bad shape and a pragmatic approach is needed to be taken on providing subsidies, the Supreme Court said on Monday while setting aside the stay orders by the Madras and Kerala high courts on the implementation of the Centre’s policy on deregulation of diesel prices.
Agreeing with the Centre on not providing subsidised diesel to bulk consumers of public utility services, like the railways and state transport corporations, the top court said that stereotypical thinking on subsidies has to be changed as the economy, which has been hit by the falling value of the rupee, has to survive.
The court said public transport corporations will have to find out means to sustain themselves without getting subsidy. “We have to change mindset. You (transport corporations) just cannot sustain on subsidy. You have to find ways and means to sustain. You have to charge from the public. We cannot ignore the fact that oil is imported. Stereotype thinking has to be changed (sic). How can you continue to survive on subsidy?” a bench headed by Justice R.M. Lodha said.
The bench, also comprising Justice M.B. Lokur, took into consideration that 83 per cent of oil is being imported and any subsidy on its price would hit state-run oil companies. It also suggested that the transport corporations should devise means to cut the cost of operations and charge the public in order to recover from the burden of increased fuel bill. “A very balanced approach has to be taken. Economy is not in good shape and ultimately it has to survive,” the bench said.
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