Types of subsidies

1. Given in direct cash (or bank transfer): PM KISSAN 6k, LPG Pahal ~200 per cylinder.

2. Given in kind: free school bags, uniform and books to the poor children, free medicines in public hospitals, free insurance. 

3. Indirect subsidies: cheap fees in government colleges, cheap kerosene, cheap rea, cheap crop insurance premium etc. Here govt. is paying some money to an organization so they may provide goods/services @cheap rate to the beneficiary.

4. Regulatory  subsidies: e.g. if State Electricity Regulatory Commission directs companies- that electricity to farmers must NOT to be beyond ₹ “x” per unit.

5. Procurement  subsidies: e.g. FCI purchasing at food grains from farmers at minimum support price (MSP). 

6. Interest  subsidies / subvention: govt pays “x%” interest on agriculture, MSME, affordable housing loans.

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