Pawar demands Rs 17,000 crore recovery from FM

While Finance Minister P Chidambaram would love to keep his subsidy bill of Rs 26,800 crore in check so as to meet his fiscal deficit target...

While Finance Minister P Chidambaram would love to keep his subsidy bill of Rs 26,800 crore in check so as to meet his fiscal deficit targets in order when he presents his Budget 17 days from now, a gentle reminder from colleague Sharad Pawar, Food and Agriculture Minister Sharad, could upset all his plans.

Pawar has demanded that his ministry be provided Rs 17,000 crore outstanding for the Sampoorna Grameen Rozgar Yojana (SGRY) and other Food for Work programmes that have given the UPA government its ‘‘human face’’.

In a letter to the FM last month, Pawar has stated that the Food Corporation of India (FCI) has run up a huge bill of Rs 15,129 crore till December 16, for ‘‘foodgrains supplied under SGRY I, SGRY II and the special component.’’

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The interest cost of this ‘‘works out to Rs 1,376 crore’’ as FCI draws cash credit from ‘‘a consortium of banks at a high rate of interest to fund its operations, states the letter. Pawar has also underlined that ‘‘the position has now become unsustainable, we would be left with no other option but to add the interest component of pending amounts to the outstanding dues… which would mean an additional burden on the Central Budget.’’

Chidambaram and his team met Pawar on Thursday to sort out this issue and other issues relating to the Budget. Pawar reiterated his ministry’s demand for intervention by finance ministry to provide budgetary support to the rural development ministry.

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