News
Thursday, June 13, 2013
Rs 240bn for subsidies, 15% higher from last year* WAPDA, PEPCO to get Rs 165.1 billion in subsidies
* Utility Stores to get Rs 6 billion; Rs 2 billion for Ramazan Package
By Ijaz Kakakhel
ISLAMABAD: The government has earmarked Rs 240.434 billion for subsidies in the budget 2013-14, an increase of 15% over last year’s allocation of Rs 208.595 billion.
The revised estimates of total subsidies provided in 2012-13 was Rs 367.472 billion against the initial allocation of Rs 208.595 billion. The initial allocation for subsidies in the current year was 0.92% of the GDP. In the budget 2013-14 the allocation for subsidies to WAPDA/PEPCO is the major component, which is 68.7 percent of the total allocation followed by subsidy to Karachi Electric Supply Company (KESC), with a share of 22.9 percent. Power tariffs, KESC, wheat, sugar and the Utility Stores Corporation are among the sectors being subsidised.
Subsidy to WAPDA/PEPCO: WAPDA and PEPCO will be provided Rs 165.1 billion in subsidies this year against last year’s initial allocation of Rs 134.970 billion, which was later increased to Rs 264.970 billion. Of this money, Rs 150 billion have been allocated for inter-DISCO tariff differential purpose, while last year’s initial allocation for this purpose was Rs 120 billion, which was later enhanced to Rs 250 billion during the year 2012-13. The government has allocated Rs 3 billion for tariff differential for agriculture tube wells in Balochistan while last the allocation was Rs 4 billion. It has earmarked Rs 12 billion as subsidy for WAPDA/PEPCO receivables from FATA against last year’s allocation of Rs 10 billion. In the budget 2013-14, the allocation for exchange rate differential for USAID’s grant to GENCOs is Rs 100 million.
KESC subsidies: The government will extend Rs 55 billion subsidy to KESC for pick-up KESC’s tariff differential.
TCP subsidies: The Trading Corporation of Pakistan (TCP) has not been allocated anything for rice operation during the year 2013-14.
Utility Stores: The subsidy to the Utility Stores Corporation (USC), which is the public’s primary source of subsidised staple foods, will amount to Rs 6 billion in 2013-14. The USC will get Rs 2 billion for Ramazan Package. This year, the government has allocated Rs 4 billion subsidy for sugar. Subsidy to PASSCO: The government has allocated Rs 9 billion for Pakistan Agricultural Storage and Services Corporation (PASSCO).
Subsidy to others: For other sectors, the government has allocated Rs 5.334 billion, while last year the allocation for this purpose was Rs 12.150 billion, which later reduced to Rs 5.991 billion.
An amount of Rs 4 billion of the total money was allocated for oil refineries and oil marketing companies/others while last year the allocation was Rs 7.7 billion. Fauji Fertiliser Bin Qasim Ltd was allocated Rs 231 million while last year the allocation was Rs 3.4 billion. Allocation for sale of wheat in FATA is Rs 283 million while last year the allocation under this head was Rs 270 million. The allocation for sale of wheat in Gilgit-Baltistan in 2013-14 has been set at Rs 814 million, while last year it was Rs 775 million.
Courtesy www.dailytimes.com.pk