The recent proposal to introduce the subsidy 'Give Up' option in railway fair, following the footsteps of the gas subsidy, is based on false propaganda and lack of proper calculation. In support of this, Government’s claim is that on each ticket, government subsidy is up to 43% of the cost. As a matter of fact, lion’s share of the subsidy is consumed by the rich and the affluent in the society and not really benefiting the poor.
A simple calculation can prove it:
The 1st class AC fair in Rajdhani Express from Mumbai Central to New Delhi is Rs.4775/- as on today. So it is the 57% cost recovered. Then the balance 43% subsidy comes to Rs.3602/- making a total cost of Rs.8377/- per ticket. On the contrary, an ordinary sleeper class ticket for the same distance in Punjab Mail, the fare is Rs. 630/-. Therefore, the subsidy comes to Rs. 475/- making the total cost to Rs. 1105. In short, with the subsidy of Rs.3602/- given to a rich man, 6 persons can travel free of charge i.e., with 100% of subsidy in a sleeper class at the present rate of 43% of subsidy (Rs.475/-) per person.
So instead of the cheap propaganda ‘give up subsidy’ total subsidy should be withdrawn from all AC sleeper classes used by the rich.
Then, comes another false propaganda. If we recover full cost in AC sleeper classes, we will loose high class passengers who may opt to travel by air. Let them travel by air. What is the problem in their travelling by air? You reduce the AC coaches depending on the demand. Are you getting any benefit by giving such huge amount on subsidy to rich and the affluent? Why the Government should give alms to rich?
(N.B.:- Also read my autobiography “A FRAUD IN THE INDIAN CONSTITUTION” exposing corruption and scams illustrated with my own experiences during my official life. To read free part of the book, go to the following link and click ‘LOOK INSIDE’ button: http://www.amazon.in/FRAUD-INDIAN-CONSTITUTION-M-P-JOSEPH-ebook/dp/B00SQKTADY/ . Also go to my web page: www.manjaly.net for more information)