NEW DELHI, Dec 15 APP: Indian Prime Minister Manmohan Singh said the subsidies given in India in different sectors had failed to reduce inequities.
Speaking at the Golden Jubilee celebrations of the Institute of Economic Growth here on Saturday, he said “we spend far too much money funding subsidies in the name of equity, with neither equity objective nor efficiency objective being met.”
Manmohan Singh had already pointed out that the subsidies given by the government would exceed Rs 1, 00,000 crore in food, fertiliser and petroleum sectors during the current financial year and it was going waste.
Describing the rural-urban divide and inter-regional imbalance as major concerns in India, he stressed the need to address it through rational approach.
He hoped India would catch up with the South-East Asia and East Asia if it would follow the growth strategy laid down in its Eleventh Five-Year Plan.
The momentum of growth needs to be sustained by accelerating investment and savings rates, he added.