Build-up to Budget 2014-15: Major Changes in food subsidy unlikely
Thu Jun 26 2014, 17:41 hrs
Even as it tries to curtail its subsidy payout, the Centre is unlikely to tweak the food subsidy significantly in the Union Budget next month. But concerns over the efficient delivery means as well as the fiscal health of the Food Corporation of India may be addressed. (Image credit: Reuters)
Interim Budget pegged the food subsidy at Rs 1,15,000 crore in FY15, marking a 25 per cent jump from Rs 92,000 crore in the revised estimate of FY14. (Image credit: Reuters)
But due to staggered payments, total pending dues with FCI are estimated to touch Rs 74,000 crore by the end of FY15. (Image credit: Reuters)
The Bharatiya Janata Party, in its election manifesto, has promised to “unbundle” the FCI into three wings — procurement, storage and distribution, for greater efficiency.