Pattern of central share under Food Security Act approved

The government on Wednesday approved the norms of expenditure and the pattern of central share on assistance to states and union territories (UTs) under the National Food Security Act (NFSA).

The decision was taken by the union cabinet under the chairmanship of Prime Minister Narendra Modi.

The decision will help in the smooth implementation of the NFSA and will benefit the people, the cabinet said in a statement.

The assistance will be available to states/UTs where implementation of NFSA has started.

The estimated financial assistance likely to flow to states/UTs annually, when the Act is fully implemented in all states/UTs, is Rs.4,341 crore.

Accepting the recommendations of the 14th Finance Commission, the government had hiked the share of states in central taxes, from 32 to 42 percent, increasing availability of funds at their end.

Inspite of the reduced share of the government, it has agreed to this additional burden in the cost of transportation of foodgrains and margins to fair price shops to ensure that the beneficiaries continue to get foodgrain at subsidised prices.

The NFSA has so far been implemented only in 11 states/UTs.

The NFSA came into force from July 5, 2013. It, amongst other things, provides for legal entitlement to two-thirds of the population to receive foodgrains at highly subsidised prices of Rs.1/2/3 per kg for coarse grains/wheat/rice, respectively.