
Rationalising subsidies to create more fiscal space
All Things Policy
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Non Merit Subsidy
In general, the way we think of it as anything which is a private good which affects only one person is not the best way to classify as a merit good. What will be a merit good in the european union, and probably in denmark, will not be a meritGood in india just because indian government will have many, many more priorities to address. Rather than saying that something is non meritorious, it just means that at this point of time it is not the highest priority of the government. So for example, food might not be a meritorious good maybe 15, 20 years henceforth when poverty levels are significantly lower than what they are now.
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