EDP Notes

Some problems may arise in devising and implementing a subsidy system. They are as
follows.
 A subsidy may remain unutilized.
 If the administration is inefficient or corrupt, subsidy will not produce the desired results.
 It is very difficult to measure the impact of subsidies.
 Subsidies may lead to inefficiency in the long run.
 Subsidies once introduced are difficult to withdraw.
 The administrative procedure must be effective.
 The cost of administering a subsidy should be considered.
 The subsidy scheme should be communicated to prospective beneficiaries.
 The quantum of subsidy should be adequate to produce the desired results.
 The target groups to whom the subsidy is to benefit should be clearly determined.