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Food Security Bill may widen fiscal deficit

Food Security Bill may widen fiscal deficit

The National Food Security Bill may get Parliament's nod soon. It aims to provide wheat and rice to almost two-thirds of India's population of 1.2 billion at highly subsidised rates. But this showpiece legislation will come at a steep price, adding substantially to the government's food subsidy bill and widening the fiscal deficit. There will also be problems of implementation.

The National Food Security Bill may get Parliament's nod soon. It aims to provide wheat and rice to almost two-thirds of India's population of 1.2 billion at highly subsidised rates. But this showpiece legislation will come at a steep price, adding substantially to the government's food subsidy bill and widening the fiscal deficit. There will also be problems of implementation.

Graphic by Santosh Kushwaha
Research by Jyotindra Dubey