Economic Affairs Secretary Shaktikanta Das has said that the government is working on a policy to reform food and fertiliser subsidy, which is pegged at Rs 2 lakh crore this year and which accounts for about 80% of the total subsidy bill. Besides, the government will also unveil more steps to deal with the mounting problem of non-performing loans of PSU banks. Das further said that the various possibilities are under consideration for food and fertilizer and there is a need for subsidy reform, at the same time the government has to take into account state of the rural economy, as well as state of farming community.
Das highlighted that along with growth revival and jobs generation, rural and agriculture sector has also become priority for the government after two years of bad monsoon adding that agriculture sector is very important because the rural purchasing power comes from there.
Meanwhile, the DEA (Department of Economic Affairs) secretary charged with managing the country's economy, admitted that bad loans of state-run banks - impaired assets stand at 12.6% of advances - are a problem but says the government is working on it.