THIS refers to the report `Centre looks to implement `discounted` fuel regime` (March 21). The federal government has come up with a plan to provide subsidised fuel to two/three wheelers and smaller cars of up to 800cc engine strength.
On the face of it, the proposal is not worl(able and its implementation remains ambiguous. No mechanism has been announced as to how this will get executed at the petrol pumps. It is also not apprised how the subsidy would be funded.The proposalappearstobe an afterthought as the same was not considered in the supplementary budget passed by parliament in February.
Further, the International Monetary Fund (IMF) is averse to any kind of subsidy. Additionally, the subsidy does not target the poorer communities which do not own vehicles and use dieseldriven mass public transport for their commute.
Last year, Punjab had announced a subsidy to power consumers in the province, but it had to be withdrawn not much later. Apparently, that is the way ahead for the latest scheme as well.
