Subsidy should be slashed: Economic Survey

Though the Economic Survey 2012-13 said that the "downturn is more or less over", it has made a strong case for cutting subsidises.

"Controlling the expenditure on subsidies will be crucial. The domestic prices of petroleum products, particularly diesel and LPG need to be raised in line with their prices prevailing in the international market," the Survey said.

The Economic Survey projected a 6.1 to 6.7 per cent growth in the next fiscal.

The survey said that subsidies could be cut by reducing leakages and better targeting of the beneficiaries. The survey noted that the government's direct cash transfer scheme could help in cutting down on subsidy leakages.

The survey underlined the need for according priority to food subsidy in view of the under consumption of basic food by the poor and the extant of malnutrition.