Sitharaman becomes the first Finance Minister to come clean on food subsidy— a loophole that hid billions of dollars earlier
Food Corporation of India(FCI) funds its loss on account of food subsidy, with loans from the National Small Savings Fund, which is the money owed to the country’s small depositors.
- The debt is accounted as one owed by FCI, and not the government, even though FCI is fully owned by the government.
- This is one of the many ways in which India’s Finance Ministers have hid the real state of the country’s finances for years.
- However, Sitharaman has put a stop to this practice. “We have explained everything and we have not brushed anything under the carpet,” Sitharaman said.
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