"The measure is credit negative for the Indian government because it will raise government spending on food subsidies to about 1.2 percent of GDP per year from an estimated 0.8 percent currently, exacerbating the government's weak finances,"  Moody's said in a statement.
Moody's currently has a "Baa3" sovereign rating on India, or its lowest investment-grade rating, with a "stable" outlook.
India's lower house of parliament approved a plan worth nearly 1.35 trillion rupees (USD 20 billion) on Monday to provide cheap grain to the poor, a key part of the ruling Congress party's strategy to win a straight third term.


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