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Rs209bn to be spent on subsidies

June 01, 2012

ISLAMABAD, June 1: The government set aside Rs208.59 billion to be doled out in subsidies to support the power sector and commodity operations in 2012-13, which seems pretty small in view of Rs512.29 billion spent in the outgoing fiscal year against the allocated amount of Rs166.4 billion.

However, the grants to various departments and the provinces had been increased to Rs312.30 billion for the new fiscal year compared to Rs277.69 billion in 2011-12.

The subsidy to the power sector had been earmarked at Rs134.97 billion in 2012-13. Official budget documents show that the government paid Rs419.08 billion in terms of power subsidy in the outgoing fiscal year compared to Rs122.70 billion earmarked at the start of 2011-12.

The government gave Rs45.23 billion in subsidy to the KESC in 2011-12. The power utility would receive Rs50.31 billion in the same head in the next fiscal year.

The major subsidy in the budget proposals for 2012-13 was announced for general public through Utility Stores Corporation at Rs6 billion, which include Ramazan Package of Rs2 billion and Rs4 billion had been allocated for subsidised sale of sugar at the government stores.

The government announced Rs10 billion subsidy for the Trading Corporation of Pakistan, while last year the allocation was Rs4 billion. But the TCP had spent Rs16.952 billion on sugar operation in 2011-12, the budget documents revealed.

The government also announced Rs5.148 billion subsidy for Passco for wheat operation and wheat reserves in 2012-13 while last year the government allocated Rs4.074 billion.

The government also announced Rs12.150 billion subsidy to category of ‘Others’ while last year it was Rs9.086 billion.

For Fauji Fertiliser Bin Qasim Ltd the government announced Rs3.4 billion as subsidy while last year it was Rs162 million. For Oil Refineries and OMCs/Others, the subsidy announced as Rs7.70 billion against the last year subsidy as Rs7.921 billion.

For sale of wheat in Fata, the federal government announced Rs270 million for 2012-13 while last year the allocation was Rs255 million. For sale of wheat in Gilgit-Baltistan, a sum of Rs775 million was allocated as subsidy while for the outgoing fiscal year it was Rs744 million.

To cover the loss faced by Railways Rs31 billion had been allocated compared to Rs30 billion granted in the previous fiscal year.

Special grant of Rs55.73 billion had been earmarked to four provinces, with Khyber-Pakhtunkhwa set to get Rs25 billion, Balochistan Rs16.57 billion, Punjab Rs5.16 billion and Sindh Rs9 billion.

Grant in aid to Gilgit-Baltistan for 2012-13 is Rs16.50 billion against Rs13.00 billion given last year and the same to AJK will be Rs11 billion with a decline of Rs2.62 billion compared to last year.