Feb 28 2009
Government Subsidies
Be there any semblance of truth whenever the Government claims that subsidies are being provided to the populace for commodities and services?
Where in all this claim can it be rationalised that the price of Petrol would be higher had it not been for subsidy borne by the Government?
The price of Petrol has been revised downwards. That is is keeping with the market trends. Clap! clap! clap! even though the decrease neither reflects nor does it commensurate with the current price of crude oil. However, here comes the most believable part. The fares for public bus transport where I live, went upwards, in the opposite direction. And what is the Government doing about it?
Highway Tolls fares have been increased in the name of Privatisation. We are led to believe that it is the Concessionaires who manage these Tolls that have successfully demanded for an increase in the price to Highway Toll fares. And the Government seems unable to keep the Highway Toll fares in accordance with the Contracts that were agreed upon with these Concessionaires?
Yet again, the Government declares that by postponing the increase in Toll fares for Highways, it would mean an additional burden of hundreds of millions of dollars in Government subsidy. As soon as that is said, it is declared that this additional burden is going to be paid from the people’s taxes. Does this makes sense? It is as saying, “Taxpayer! damned if you do, damned if you don’t”.
Granted that if the tax payer has to pay nothing for something, then understandably the services and goods has been subsidised. But then, this is not the case. The tax payer pays for the vehicle’s road tax and on top of it, the taxpayer still has to pay for increased Highway Toll fares? Who is subsidising who?




