India has extended its free food programme for the needy by three months, adding $5.46 billion to government expenses and increasing the difficulty of attempts to reduce the budget deficit.
The majority of experts predict that India will fall short of its 6.4 percent of GDP fiscal deficit target for the year ending in March 2023 due to government initiatives to combat inflation that might cost more than $20 billion.
The initiative to provide people with 5 kg (11 lb) of foodgrains per month in India has cost over $43 billion since April 2020.
Anurag Thakur, the information minister, announced at a press conference that it will now be prolonged till December.
Along with restrictions on wheat and sugar exports, the government has limited the export of rice due to mounting concerns over grain supplies.
As government purchases from farmers more than half this year, wheat inventories at state-run institutions plummeted to 24.82 million tonnes by September 1 from 51.78 million a year earlier.
At the start of this month, there were 35.36 million tonnes of rice in stock, down from 38.73 million at the same time last year.
12.2 million tonnes of foodgrains are anticipated to be expended for the free food programme, according to the government.
