In Last 8 years,
UPA government gave subsidies worth 10+ lakh crores. More than 220 Billion USD. (Average Rs 45 in last 8 years). More than GDP of Pak.
They increased
the subsidy double before 2009 election. 1,29,708 and 1,41,351 crores in 2008-09 and 2009-10 respectively. It was 70,926 crores in 2007-08. After that, It was always 1.5 lak crores and more.
Right now, It's close to 2 lakh crores. Going forward, They will increase even more in 2012-13 and 13-14 just for the sake of winning election.
So much expenditure that fiscal deficit is close to 6%. In addition, Negative sentiments among investors + High interest rate + High inflation + incompetent government. Therefore, Currency de-valuation.
More subsidy means More expenditure which translate into High Fiscal deficit + De-valuation of currency + impact on growth.
However, Poor people remained poor and farmers are still dying
and not all subsidy is for poor people.