Indian Economy·Policy Reforms

Subsidies and Welfare Expenditure — Policy Reforms

Constitution VerifiedUPSC Verified
Version 1Updated 7 Mar 2026
EntryYearDescriptionImpact
97th Constitutional Amendment Act2011This amendment inserted Article 43B into the Directive Principles of State Policy, which states that 'The State shall endeavour to promote voluntary formation, autonomous functioning, democratic control and professional management of co-operative societies.' While not directly about subsidies, it indirectly supports welfare by promoting self-help and economic empowerment through cooperatives, which can be beneficiaries or channels for certain subsidies and welfare programs, especially in agriculture and rural development.Strengthened the constitutional backing for cooperative movements, which are vital for rural livelihoods and can play a role in the distribution of agricultural inputs (like fertilizers) or marketing of produce, thereby impacting the effectiveness and reach of related subsidies and welfare initiatives. It fosters a bottom-up approach to economic development and welfare.
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