Chidambaram assures country can afford Food Security Bill

New Delhi, Aug 27: Just a day after the Food Security Bill (FSB) was passed in the Lok Sabha after a nine- hour debate, industry is raising concern about the effect of this subsidy scheme on the country's economy and will increase the burden on the food security act.

Finance Minister P Chidambaram on Tuesday said that the country can afford the FSB as the rupee continued to slumped on Tuesday reaching a record low of 66.07 against the US Dollar.

The FSB which is projected to cost Rs 1.25 lakh crore, will have a negative impact on the fiscal defict, say Confederation of Indian Industry (CII) officials that this will have a negative impact on the fiscal deficit.

Chidambaram , on the other hand, said that the Food Security Act will not raise the fiscal deficit for this year. "4.8 per cent is red line and it will not breach. We have provided enough money for the food security," he said.

The FSB is projected to provide food at a subsidised rate for 67 per cent of the country.

OneIndia News