I highly suggest we get this article cited as a source and its content added to the subsidy section:
We must distinguish between two kinds of cash transfers: transfers to producers and transfers to consumers or citizens. I think producer subsidies such as fertilizer subsidies should be transferred as cash directly to producers. Today, fertilizer subsidies are both regressive, benefiting richer farmers more than the poor, and inefficient, with a part of the subsidy going to inefficient fertilizer firms.
There will be opposition if you try to reduce such subsidies. So as a first step, the subsidies must be converted to cash transfers, which is somewhat politically easier, and which will make the subsidy transparent. If I may be flippant, even the perks and allowances which ministers and their families receive, such as free flights and free medical treatment, should all be given in cash, so that you and I know how much each minister costs the country. Transparency will make it easier to reduce such subsidies over time. Even consumer subsidies such as those on LPG (liquefied petroleum gas) cylinders, which benefit mostly the richer sections, should be eliminated.
Instead, I would favour some kind of universal citizen transfers. Estimates show that total non-merit subsidies funded by both states and the Centre amount to roughly 9% of India’s gross domestic product (GDP), which largely benefit the better off—the dole for the rich and middle classes. So, I have advocated the following kind of deal: if we can persuade the better-off people to give up only one-third of these subsidies, calculations show it is possible to provide each household more than Rs.1,000 per month. And you won’t even need to raise fresh taxes.