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Govt plans fund to offset food subsidy burden by Anindita Dey

The government is planning to come up with a price protection fund to cushion the burden of food subsidy, which is expected to grow manifold under the new Food Security Bill. The proposed fund, under the ministry of food and consumer affairs, is a Budget proposal for 2012-13. Officials said the framework of the fund was at a nascent stage. “Some inferences are being drawn from the recommendation of National Farmers’ Commission...

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Difficult to digest by Jyotika Sood

After much debate, the Cabinet cleared the food security bill. Will it really ensure food for every Indian? THE Lokpal Bill debate may have ended in a fiasco but 2011 ended on a positive note for the Congress-led UPA government on another count. Its pet project, the National Food Security Bill (NFSB), was cleared by the Union Cabinet and introduced in Parliament. The bill seeks to address widespread hunger in the...

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Dr Abhijit Sen, Member-Planning Commission of India, interviewed by Ajay Vir Jakhar and Paranjoy Guha Thakurta

Dr Abhijit Sen is Member, Planning Commission of India. He is a Ph.D. in Economics from the University of Cambridge (currently on leave as Professor of Economics at the Jawaharlal Nehru University) and has also taught at the Universities of Sussex, Oxford and Cambridge. Besides serving various think tanks in the states and at the centre, Dr Sen has been a consultant with UNDP, ILO, FAO and various other multilateral...

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Last straw on the fisc back by Soumya Kanti Ghosh & Rajiv Kumar

The huge expenditure on the food bill, with the attendant leakages, could well make fiscal recovery impossible In the first part of this article, we have estimated the actual cost of implementing the food security bill in its current form. In this part, we now examine the fiscal sustainability of the same. The current state of the revenue and expenditure trends of the Central government (refer table) show that while revenue...

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It will not stop at Rs 60,000 crore by Soumya Kanti Ghosh

How economically sustainable is food subsidy? The cost could even be double of what the government estimates Food deprivation and malnutrition are completely unacceptable and everything has to be done to eliminate such an evil. The prevalence of malnutrition in a country like India is in itself a cause for serious concern since malnourished children may jeopardise India’s favourable demographic dividend (as per independent estimates, close to 60 per cent of...

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