Subsidy on diesel oil is a wasteful expenditure by the government. Write one point in support of this observation and one against it.

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Solution

It is a wasteful expenditure:

Because the benefit of subsidy (on diesel oil) is unduly reaped by a richer section of the society who get cheaper oil to run their luxury cars.

It is not a wasteful expenditure:

Because, farmers need to be given diesel at the low price. So that, the cost of farming does not rise and farming remains a profitable occupation.

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