This Budget, the finance ministry may consider a proposal for a seed fund that would provide financial support to states willing to sell items other than foodgrain, sugar and kerosene through the public distribution system (PDS). The move, experts believe, will help reigning in food inflation that remains in double digits, despite moderation.
To fund infrastructure projects in the public-private-partnership model, the forthcoming Budget could lay down some broad contours on the setting up of debt funds, which will provide investment for the core sector.
As a bonanza to southern states, Finance Minister Pranab Mukherjee is expected to allocate funds worth Rs 6,000 crore (Rs 60 billion) for Chennai and Bangalore Metro rail systems in the forthcoming Budget.
Officials said the proposal and funding could be included in the coming budget and preliminary discussions have been held with finance ministry officials.
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