Saving On Account Of DBT of LPG Subsidy/CAG v/s Government of India/Rs. 2000 crore v/s Rs. 20000 crore

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Business Mantra: Faridabad


Direct Transfer of LPG Subsidy: Government claims nearly 22000 cr. Saving in last 2 years due to direct transfer of subsidy to beneficiary’s Account.

CAG has given its report on LPG Subsidy, According to this report the savings due to DBT (Direct beneficiary transfer) are nearly 2000 crores.

DBT (Direct beneficiary transfer) or PEHAL (Pratyaksh Hastantrit labh) means the Subsidy directly goes to the beneficiary’s saving bank account and not diverted. According to the CAG’s report the government’s claim of Rs. 22000 crores saving is not completely on account of DBT or PEHAL.

According to various, news websites the total saving of Rs. 22000 crore is on two accounts.

  • Saving on account of DBT and PEHAL
  • Saving due to fall in crude prices or gas input prices.

As per CAG’s estimations nearly about Rs. 2000 crore is on account of DBT and remaining Rs. 20000 crore Is on account of fall in crude prices/ gas input prices.

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