So the much criticized food subsidy and employment guarantee for the poor and the unemployed cost about 1.14 per cent of GDP, whereas the cost of subsidizing electricity, fuel and fertilizers for the relatively better off is minimally 2.63 per cent, more than twice what is allocated to feed the poor and provide employment to the unemployed.
In his book "A Wish a Day for a Week," Amartya Sen highlights the disparity in government subsidies, comparing the financial support aimed at the poor with that for wealthier segments of the population. He points out that the food subsidy and employment guarantee programs, intended to assist the underprivileged, only account for about 1.14 percent of the GDP.
In contrast, subsidies provided for electricity, fuel, and fertilizers—predominantly benefiting the better-off—amount to at least 2.63 percent of GDP. This means that the resources allocated to support the well-off are more than double those allocated to aid the poor and unemployed. Sen's analysis sheds light on the imbalance in fiscal policies and raises questions regarding their equity and effectiveness in alleviating poverty.
