The implementation of the food security act will need an expenditure of Rs.27,300 crore more than that incurred on the existing food subsidy schemes, the Rajya Sabha was informed on Friday.
"Estimated annual expenditure on food subsidy for full implementation of National Food Security Act (NFSA) in all the states/UTs is about Rs.27,300 crore more than the estimated annual expenditure on food subsidy for erstwhile TPDS and other foodgrain-based welfare schemes," union Minister for Food and Public Distribution and Consumer Affairs Ram Vilas Paswan said in a written reply.
Paswan said the highly subsidised prices of food grains are likely to result in additional disposable income in the hands of people.
This additional income can be used for other facilities like health, education, better nutrition, Paswan added.
The NFSA of 2013 entitles up to 75 percent of the rural population and up to 50 percent of the urban population to receive food grains at subsidised prices of Rs.3 per kg of rice, Rs.2 per kg of wheat and Rs.1 per kg of coarse grains.
These prices for the grains are significantly lower than the central issue prices for the below poverty line and above poverty line households under the Targeted Public Distribution System (TDPS), he said.