- India has the lowest public higher education spending per student globally, according to UNESCO.
- The theft rate for subsidized kerosene is 39%.
- Additionally, subsidies may have negative or unanticipated economic repercussions. If enforced in a market where there is competition, they would lead to an ineffective allocation of resources.
- By shifting financial resources out of places where their marginal productivity would be higher. Widespread subsidies are a waste of resources.
- Price controls may result in decreased production, shortages, and the creation of illicit markets, which enrich their operators and provide economic rent to privileged individuals who have access to the distribution of the regulated commodity.
Subsidy: Meaning, Types, Categories and Benefits of the Subsidy