Connect to share and comment

India budgeted subsidy will cover food spending: finance minister


NEW DELHI (Reuters) - India's budgeted food subsidy of 900 billion rupees ($13.21 billion) is adequate to take care of the cost of the rollout of a plan to provide cheap food grains to the poor this fiscal year, Finance Minister P. Chidambaram said on Thursday.

Indian stocks plummeted more than 3 percent in each of the two sessions after the lower house of parliament approved the plan on Monday, on fears additional government spending on subsidies would widen the fiscal deficit.

($1 = 68.1450 Indian rupees)

(Reporting by Rajesh Kumar Singh)