The Government has released Rs 25,834 crore to Food Corporation of India (FCI) as food subsidy. In addition to this, wage and means advance of Rs 10,000 crore will be released shortly. FCI is also raising short term loans from banks up to a maximum limit of Rs 30,000 crore. The recourse to these loans will be made by FCI as and when required.
Taken together these funds, there will be sufficient resources to manage Rabi procurement which has just started. In 2015-16, original Food Subsidy allocation was Rs 97,000 crore which was increased to Rs. 1,12,000 crore at RE stage. This helped to bring down the arrears of subsidy to Rs 58,650 crore.
During 2016-17 also the government may consider additional food subsidy over and above budgetary provision, if required, towards the end of financial year to further bring down the subsidy arrears.
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