Food security law unlikely to dent govt finances,says Mayaram

The finance ministry on Thursday said the food security law would not have much impact on government finances and maintained that it would achieve the fiscal deficit target of 4.8 per cent in 2013-14.

We are 100 per cent certain that we will achieve the fiscal deficit target of 4.8 per cent for the current fiscal. We had already factored in Rs 10,000 crore this year as additional cost and we dont think during the year if it food security programme has to be rolled out,there could be any slip up on the fiscal deficit, said Arvind Mayaram,secretary,department of economic affairs.

His comments came a day after the Union Cabinet decided to issue an ordinance on the food security bill.

The Union Budget 2013-14 has allocated Rs 77,740 crore as food subsidy bill for the current fiscal and an additional Rs 10,000 crore for the proposed bill. But government spending could register a sharp rise with the full roll-out of the programme.