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)

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Staff @CD

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 the undesirable subsidies. In the way forward, mention the need for phasing out the undesirable subsidies.
Conclude by mentioning the need for debate on the purpose and ways in which subsidies are provided in the country.

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6 responses to “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)”

July 25, 2022

Athira A Jolly

Order no : #0000581402

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1. July 31, 2022
  
  Staff @CD
  
  Athira
  
  Good attempt. Keep it up.
  Introduction has become a bit too long, you can keep it short.. Just define subsidies and mention the debate.
  Political populism can be explained with examples in next part as it is also one of the purposes of subsidies. Other points are good.
  Issues mentioned are also fine.
  In way forward, you can talk about merit and non-merit subsidies and argue for the continuation of merit subsidies and scrapping up the rest.
  Also, try to write a concluding statement.
  Keep practicing. 🙂
  
  4.5/10
July 27, 2022

Sandeep gupta

order no #0000581794

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1. August 1, 2022
  
  Staff @CD
  
  Sandeep
  
  Good attempt.
  Introduction is good.
  In purposes, you have talked about merit subsidies mostly, you can also mention about political populism(give examples) here only as this is also one of the purpose.
  In issues, point about fiscal deficit is good. Further, you can mention things like leakages, issue of corruption, issues in identification of beneficiaries etc
  Way forward and conclusion are quite elaborate. Way forward is fine, conclusion can be kept a bit short.
  Keep practicing. 🙂
  
  4.5/10
July 29, 2022

believing is seeing

JmQPOijgofaERD

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1. August 1, 2022
  
  Staff @CD
  
  Hello
  
  Introduction is not properly framed. Also, subsidy might be the differential between the actual price of the good/service and the price recovered by the government.. So the govt doesn’t take anything is not entirely true.
  In next part, flowchart is fine.. But it could be arranged into various sections- economic benefits, social benefits, industrial/agricultural benefits etc
  Also, subsidies given for the purpose of getting votes(populist subsidies) can also be mentioned as negatives.
  In issues, points mentioned are fine, fiscal burden needs to be mentioned though.
  In way forward, you can talk about merit and non-merit subsidies and argue for the continuation of merit subsidies and scrapping up the rest. Way forward needs to be mentioned as it has been exclusively asked.
  Conclusion is fine.
  Keep practicing. 🙂

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)

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6 responses to “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)”

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