India budgeted subsidy will cover food spending- finance minister

Last Updated: Thu, Aug 29, 2013 14:00 hrs

NEW DELHI, Aug 29 (Reuters) - India's budgeted food subsidy of 900 billion rupees ($13.21 billion) is adequate to take care of the cost of the rollout of a plan to provide cheap food grains to the poor this fiscal year, Finance Minister P. Chidambaram said on Thursday.

Indian stocks plummeted more than 3 percent in each of the two sessions after the lower house of parliament approved the plan on Monday, on fears additional government spending on subsidies would widen the fiscal deficit.

($1 = 68.1450 Indian rupees) (Reporting by Rajesh Kumar Singh)

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