Food Security Bill will raise expenditure on education, health and nutritious food: Crisil Research

KOLKATA: CRISIL Research believes that the proper implementation of the food security bill ( FSB) will lower spending on food grains by below poverty line ( BPL) households, and free up resources for spending on other goods and services, in particular health, education, and nutritious food.

CRISIL Research's estimates suggest that the FSB could generate additional savings of around Rs 4,400 this year for each BPL household which begins to purchase subsidised food. This savings equals around 8 per cent and 5 per cent of the annual expenditure of a rural and urban household, respectively.

For rural households the savings amount exceeds their current annual medical and educational spends. Higher disposable income would also allow BPL households to spend more on protein rich food, thereby improving their nutritional intake.

While the benefits of the Bill could go well beyond just the provision of food, the success of the scheme and its welfare impact lies in identifying the poor and making sure that they are able to avail the food subsidy.