New Delhi: Direct transfer of benefits in cash to targeted beneficiaries of food and fertilizer subsidies could save an estimated Rs 60,000 crore and help trim the fiscal deficit which, in turn, may calm stubbornly high food inflation, a study by a government wing has shown.

The study showed that policies to rein in food inflation would require winding down of the fiscal deficit, which has gone above 8% of GDP for Centre and states combined and way beyond the guidelines laid out in FRBM (Fiscal Responsibility and Budget Management) Act, 2003.