Haryana and union territory of Chandigarh is soon going to launch a smart card-based delivery system to distribute foodgrains under public distribution system.

"An idea that has been growing is to deliver subsidy to the target group through smart cards. Finally, I have two willing partners -- Haryana and Chandigarh. They will introduce, on a pilot basis, a smart card-based delivery system to deliver foodgrains under the PDS," Finance Minister P Chidambaram said in his Budget speech.

Strengthening the PDS would mean adequate supplies, reasonable subsidies and efficient delivery of the subsidised food, the finance minister added.

Chidamabram also announced that a sum of Rs 32,667 crore (Rs 326.67 billion) would be provided next year for food subsidy under the PDS and other welfare programmes.

The food subsidies of the country was Rs 31,545.59 crore (Rs 315.45 billion) in 2007-08 fiscal.

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