Rs 208.5b subsidy planned for FY13


The federal government has earmarked Rs 208.595 billion in subsidies for the next fiscal year against last year’s allocation of Rs 166.448 billion, showing an increase of 25.32 percent. The announcement was made during the unveiling of the annual budget 2012-13. The revised subsidies for the current fiscal year stand at Rs 512.292 billion due to an increase in the power sector subsidy.
The subsidy for WAPDA and PEPCO is kept at Rs 134.970 billion in the next fiscal year as compared to the budgetary target of Rs 122.700 billion for the current fiscal year.
The inter-DISCO differential subsidy is earmarked at Rs 120 billion for the next fiscal year as compared to the current year’s budgetary target of Rs 50 billion.
The other major subsidy announced for the general public is Rs 6 billion subsidy through the Utility Stores Corporation. It will include a Ramzan Package of Rs 2 billion. The government has also allocated Rs 4 billion for sale of sugar through the USC.
The government has also announced a Rs 10 million subsidy for the Trading Corporation of Pakistan. The TCP has spent Rs 16.952 billion on the sugar operation in 2011-12, the budget documents said.
The government has announced Rs 5.148 billion in subsidy for PASSCO for wheat operation and wheat reserved stock in 2012-13. Last year, the amount stood at Rs 4.074 billion. For the next fiscal year, the government has announced a Rs 1.148 billion subsidy for wheat operation which was Rs 4.171 billion last year. For the wheat reserved stock, the government has announced Rs 4 billion.
The government also announced Rs 12.150 billion in subsidy for others. Last year it was Rs 9.086 billion.
For Fauji Fertilizer Bin Qasim Ltd in this category, the government announced Rs 3.4 billion, for Oil Refineries and OMCs, the subsidy announced was Rs 7.700 billion against last year’s subsidy of Rs 7.921 billion. For the sale of wheat in FATA, the federal government announced Rs 270 million for 2012-13 while last year the allocation was Rs 255 million.
The government also announced Rs 775 million for the sale of wheat in Gilgit-Baltistan, and Rs 5 million for the sale of Salt.