Rationalizing Energy Subsidies: The Revision of Pradhan Mantri Ujjwala Yojana (PMUY)

However, this rationalization presents a dual challenge. First, there is the risk of 'fuel switching.' If households exhaust their four subsidized cylinders, the high market price of LPG may force them back to traditional biomass (firewood, dung cakes), potentially negating the respiratory health benefits achieved over the last decade. Second, it raises questions about energy justice. While the move aids fiscal consolidation, it may disproportionately affect larger families or those in colder regions who require more fuel for heating and cooking. For governance, this highlights the delicate balance between fiscal prudence and social welfare. The use of Direct Benefit Transfer (DBT) ensures that the subsidy reaches the intended beneficiary without leakages, but the adequacy of the support remains a critical point of evaluation for the scheme's long-term performance in improving the Quality of Life (QoL) for the vulnerable sections. UPSC Relevance: This development is crucial for GS Paper II (Welfare Schemes) and GS Paper III (Subsidies and Budgeting). It serves as a contemporary case study for analyzing the 'performance of welfare schemes' and the 'rationalization of subsidies,' providing a nuanced argument for answers regarding the trade-off between fiscal deficit management and social security objectives.