India – Haj Subsidy- Truth Vs Hype

Mazhar Farooqui

Haj Subsidy Explained

Now that the government has removed the Haj subsidy, let’s try to understand what was the Haj subsidy, whether it existed or not, who benefited from it and why it has been scrapped.

You won’t get a simpler explanation than this so share this post widely.

HAJ SUBSIDY TRUTH vs HYPE: Do the Maths

Number of Indian Muslims who went for the annual pilgrimage in 2016: 1,36,000 (the quota has now been increased to 175,000.)

Haj subsidy sanctioned by government in 2016: 450 crores (In 2017, it was reduced to 200 crores)

Rs.450 crores ÷ 1.36 lacs Hajis = Rs. 33,000

So the subsidy is around Rs 33,000 per Haji

LETS SUM UP THE EXPENDITURE 

Each haji pays Rs. 220,000 to the government.

From this, around Rs.34,000 (2,100 Riyals) are given back to the Haji after reaching Makkah.

Rs. 220,000 – Rs.34,000/- = Rs.186,000

This means that in effect each Haji pays Rs 186,000 to our government.

Mumbai or Delhi to Jeddah return tickets, if booked two months in advance, cost less than Rs.25,000/ but let us still peg them at Rs.25,000/

Food, local transport expenses are borne by hajis from their own pockets.

Calculation of expenses made by the government from the amount (Rs.1,86000/- ) paid to them

RETURN AIR TICKETS 25,000
STAY IN MECCA(25 DAYS) 50,000
STAY IN MADINA(15 DAYS) 20,000

OTHER EXPENSES 25,000

TOTAL EXPENSES 120,000

 CONFUSED?

I bet you are, because the government takes Rs 186,000 from each Haji but ends up spending only Rs 120,000 on them. So where does the rest of the money (Rs 66,000) go?
In fact it’s the loot made in the name of Haj subsidy that is keeping our national carrier afloat.

Essentially, the government earns Rs 66,000 from each Haji and yet it makes it appear as if it’s doing a huge favour, appeasement of ‘tushtikaran’ to Muslims. Actually it’s the Hajis who are doing the tushtikaran of the government.

Here is how

Rs 66,000 from each Haji multiplied by the number of Hajis (1,36,000) multiplied by Rs 450 crores sanctioned in the name of Haj subsidy equals 1347.6 crores Yes a staggering one thousand three hundred forty seven crores and sixty lakhs

What was the loss of Air India in 2015-16?

Rs 3,836 crores? Without the annual windfall from Hajis it would have been a lot more.
So why has the government removed the Haj subsidy if it’s helping Air India so much? Because Air India, in case you don’t know, is being privatized.

The Govt has already allowed foreign airlines to own 49 per cent stakes in the national carrier.