We are still facing some basic issues in our system and struggling with them. Though the number of Income Tax payers is increasing but still many are outside the tax net and for Govt or regulatory agencies it is difficult to find out who can afford or who can not. Due to this confusion many well off people are using or rather misusing these subsidies and facilities.
Let us see the example of subsidy on cooking gas. We all were taking it but when PM made a personal appeal that the well off people voluntarily drop this benefit, many people came forward and later many were forced to drop it through linkage to their IT return.
So until unless the boundaries are clearly defined and there are strict guidelines it is very difficult to reduce the list of beneficiaries in any welfare scheme.
Ration card is another example where governance is so poor that even after the children's employment the parents are taking the subsidised items in a remote village Govt low price shop. That is why it was thought by some prudent planners in Govt to make a universal card like Aadhaar which does things electronically to bring the better governance.
Anyway these are the ambiguities in the system and till they are there, the Govt expenses on these accounts will remain at staggering heights.
Knowledge is power.
But the real problem comes because people want to get these benefits and somehow manage with the officials and try to get the subsidy. For example, a person working in a private company will pay the income tax. But he will manage with the village chief and gets the white ration card. Similarly, the farmers who have more than 20 acres of land also will get the health card using his influence with the local MLA or MP. All government employees can't get these benefits as their incomes are very clear. But some of them may have many other sources of income.
The ultimate suffer is the private employer who is paying income tax to his last paise of income and don't have any influence to get any special benefits. Whatever may be the procedures government starts he is the only suffer I think.