ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Financial and Distributional Implications of the Food Security Law

The financial implications of the National Food Security Bill, which has now become law, are going to be huge. This analysis points out that one needs to take into account not only the cost of the food subsidy but also the costs of setting up or running new institutions and bureaucracies, and the costs that are likely to arise if there are political pressures to protect the existing beneficiaries. There are still more imponderables, and the fi nal cost could add up to much more than what is now estimated.

[This article was received by EPW before the National Food Security Bill was passed by Parliament.]

The author would like to thank Bharat Ramaswami, Raghuram Rajan and Nilambuj Sharan for various inputs, comments, and discussions. The views expressed in this article are personal, and do not represent those of any of the institutions to which the author is affi liated. All errors are mine.

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