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| Food subsidy may top Rs 60,000 cr this fiscal: Pawar | |
| Press Trust of India / New Delhi August 19, 2009, 21:21 IST | |
Food and Agriculture Minister Sharad Pawar today said the government's food subsidy bill may rise by about 38 per cent to exceed Rs 60,000 crore this fiscal and asked some states to review taxes on the purchase of foodgrains by central agencies in their territories.
Addressing a meeting of food ministers from different states, Pawar said, "Food subsidy has grown manifold in the last few years and in 2009-10, it is estimated that it will cross Rs 60,000 crore."
The food subsidy, which accounts for a major share in the government's overall dole-out burden apart from that on fertiliser, stood at Rs 43,627 crore in the 2008-09 fiscal.
The government had earlier expected the food subsidy bill to increase to Rs 52,489 crore, as announced in the Budget this fiscal.
Food subsidy is provided to meet the difference between the economic cost of foodgrains and their sales realisation at Central Issue Price fixed for the public distribution system (PDS) and other welfare schemes.
In this context, Pawar asked Punjab, Haryana and Andhra Pradesh to reduce high taxes imposed by them on the purchase of foodgrains by central agencies in such states.
"My request to state governments of Punjab, Haryana and Andhra Pradesh is that they need to review high taxes levied by them on the procurement of foodgrains by government agencies," he said.
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