Mentor’s comment-
-In the intro, mention the debate over various schemes in India for their nature and purpose.
In the body mention need to limit subsidies and schemes to essential goods and services and also to merit goods and services. Next mention the issue of delivery of such services and goods. In case of production related incentives mention direct budgetary support and tax concession and need for limiting the misuse.
-Conclude by mentioning the need for placing the budgetary limit on such supports.
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Pranav
You need to cover various dimensions in the answer, otherwise answer looks quite generic.
Introduction is fine, schemes such as free electricity by state governments and PLI etc can also be mentioned along with the examples you have given.
In next part, mention what all goods and services should get budgetary support- you can differentiate between essential/merit goods and freebies. In essential/merit goods you can mention points like schemes related to healthcare, education, food security etc and advantages of subsidising them. Next mention freebies like electricity, free TV sets etc and few disadvantages of subsidising them(fiscal deficit, populist measures etc).
Next, modes of delivery part is missing in your answer- you can mention direct income support or a procurement set-up and a public distribution system for essential goods whereas budgetary allocation and indirect tax concession for production related schemes.
Conclusion is fine.
Keep practicing. 🙂