Monday, December 19, 2011

UPA’s hand-to-mouth card

“When you think what this means for public finances, you know the government is living for the day”.


The government will require 950 billion rupees a year to implement the policy, which will provide grains to 64 percent of India’s 1.2 billion people. Every Indian falling within the so-called priority category will get 7 kilograms of rice or wheat or millet a month, Food minister K.V.Thomas said. Rice may be sold at 3 rupees per kilogram, wheat at 2 rupees and millet at 1 rupee, he said. That compares with market prices of 24 rupees a kilogram for rice in New Delhi and 15 rupees a kilogram for wheat, according to data provided by the food ministry.

Bloomberg: Gandhi Bill Strains India’s Finances to Give Cheap Food to Nation’s Poor

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