India to Slash Spending on Food Subsidy for 800 Million People

  • The cut comes as government wants to shrink its budget deficit
  • India discontinued a pandemic-era program offering free grain
Indian Economy Is on the Right Track, Finance Minister Says
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India will spend less on a food subsidy program that feeds 800 million people after the government stopped providing some grain for free.

Spending will be cut to 1.97 trillion rupees ($24 billion) in the new fiscal year starting April 1 from an estimated 2.87 trillion rupees this year, according to Finance Minister Nirmala Sitharaman’s budget presentation on Wednesday. That’s still double the pre-pandemic level of about 1 trillion rupees.