CAG exposes Centre’s claims on LPG savings, it’s due to dip in global oil price not giving up subsidy


Central government has often taken credit for saving crores of rupees through its much-publicised scheme prompting affluent households to give up subsidy on LPG.

However, in a damning revelation the Comptroller Auditor General has said that the Narendra Modi government’s claims were far from the truth.

Centre has always claimed of having achieved a saving Rs 21,672 crore through Direct Benefit Transfer and Give It Up schemes between 2014 and 2016. However, according to CAG audit as reported by The Hindu, the savings through LPG subsidy was only Rs 2,000 crore while a little less than Rs 20,000 crore took place because of the dip in international oil prices.

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Th CAG report is expected to be tabled in the ongoing Monsoon session of the Parliament.

The audit has also found substantial systemic problems with the Direct Benefit Transfer in LPG scheme which is called Pahal by the government. Among them are diversion of domestic subsidy for commercial use and commercial consumption LPG being diverted to domestic use.

In 2015, while addressing the nation on the Independence Day from Red Fort, Prime Minister had claimed of saving Rs 15,000 crore through GiveItUp and DBTL schemes.

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“We got the LPG gas subsidy under direct cash benefit transfer. We used the Jan Dhan Yojana and Aadhar cards. Because of this, middlemen and black marketers have been hit. We corrected the system and Rs 15,000 crore, which was stolen every year in the name of gas subsidy, has been saved,” Modi had said.