Did not suggest elimination of all subsidies: Kelkar

The committee on fiscal consolidation did not recommend the elimination of all subsidies as the government needs to subsidise some essential commodities like kerosene and food for the poor, its chairman Vijay Kelkar said.

"I agree with people who argue that we cannot eliminate subsidies, we shouldn't eliminate subsidies. Food subsidy is defensible. For undernourished children or lactating mothers food subsidy is not only defensible, it is ethically right and morally correct", Kelkar said in an interview to CNBC TV18.

"Subsidy must be continued for kerosene as long as it is affordable (for the government)," he added.

He said the committee has pointed out areas where subsidies can be done away with or limited to the minimum.

The government, however, considers the report of the Kelkar committee to be contrary its policy of inclusive growth where subsidies are needed to protect the poor.

''Some recommendations appear contrary to the declared objective of the government of sustained and inclusive growth,'' Department of Economic Affairs (DEA) secretary Arvind Mayaram said today.