Bloated food subsidies push record Rs 43k-cr payment to next year

Nov 11 2013, 03:29 IST
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The subsidy demand for this year would be close to the budgeted amount of Rs 90,000 crore (Reuters) The subsidy demand for this year would be close to the budgeted amount of Rs 90,000 crore (Reuters)
SummaryThis would be a record roll-over amount, much higher than last year’s Rs 32,650 crore

FCI proposal to raise Rs 8,000 crore through bonds that would have reduced its borrowing cost and increased cash flows. Food ministry sources told FE that the finance ministry has stated that the limits for giving government guarantee for such bonds for the current fiscal have already been exhausted.

FCI had earlier raised Rs 5000 crore in March 2013 through taxable bonds. Officials say that the annual interest saving through issue of these bonds would be Rs 200 crore.

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