The federal government has increased subsidy volume 25.86 percent to Rs 174.746 billion for the fiscal year 2018-19 from budgetary allocation of Rs 138.846 billion in 2017-18. However, the volume of subsidy has been increased by 18.38 percent for 2018-19 compared with the revised amount of Rs 147.604 billion for the current year.
In budget 2018-19, the allocation for subsidies to Wapda/Pepco forms the major component which is 76.7 percent of the total allocation followed by subsidy to Passco and KE with share of 10.9 percent and 8.8 percent, respectively. Subsidies account for 0.5 percent of GDP in budget 2018-19
According to budget documents, the estimated subsidy for power sector has been kept at Rs 134 billion for 2018-19 as compared to revised allocation of Rs 81.500 billion in 2017-18. However, an increase of 25.86 percent in subsidy for 2018-19 has been made when compared with budget allocation of Rs 102.500 billion in 2017-18.
Inter-Disco tariff differential subsidy is projected at Rs 105 billion in 2018-19 against a budgetary allocation of Rs 65 billion in 2017-18 which is 61 percent higher but the earmarked amount for 2018-19 is 84.2 percent higher if compared with revised subsidy of Rs Rs 57.500 billion in 2017-18.
The government has earmarked Rs 5 billion as tariff differential subsidy for agriculture tubewells in Balochistan for 2018-19 as compared to budgetary allocation of Rs 8.5 billion in 2017-18 which is 41 per cent less if compared with revised allocation of Rs 8.5 billion.
To pick up electricity receivables from FATA an amount of Rs 12 billion has been earmarked in the budget against 10 billion for 2017-18 which shows an increase of 20 percent.
Finance Minister Dr Miftah Ismail has not allocated any amount for inter-Disco tariff differential (arrears) for 2018-19 despite the fact that an amount of Rs 4 billion had been earmarked for 2017-18. However, an amount of Rs 15 billion has been earmarked for power sector PSEs' reforms.
The government has also earmarked Rs 12 billion for 2018-19 as subsidy to Water and Power Development Authority (Wapda) against revised allocation of Rs 14 billion in 2017-18.
To pick up KE's tariff differential, an amount of Rs 15.4 billion has been earmarked in budget for 2018-19 against Rs 15.5 billion in 2017-18 which is 0.6 less than 2017-18. However, allocation for next fiscal year is 54 per cent less if compared with revised allocation of Rs 33.476 billion in 2017-18.
The allocation for tariff differential for agriculture tubewells in Balochistan is Rs 400 million in 2018-19 against allocation of Rs 500 million in 2017-18 and revised amount of Rs 387 million. However, no subsidy has been allocated for Discos and KE despite the fact Rs 22.089 billion were given to Discos and KE in revised budget on this account in 2017-18.
Budget documents further reveal that the government has enhanced subsidy to Utility Stores Corporation (USC) by 50 percent to Rs 6 billion in 2018-19 - from Rs 4 billion in 2017-18. The amount of Ramazan package has also been increased by 33.3 percent to Rs 2 billion for 2018-19 from Rs 1.5 billion in 2017-18. An amount of Rs 500 million has also been allocated for sale of pulses, rice, tea, etc, at subsidised rates.
The volume of subsidy to Passco has been slashed by 25 percent to Rs 1.5 billion in 2018-19 from Rs 2 billion in 2017-18. However, subsidy is 114 percent higher if compared with revised allocation of Rs 700 million in 2017-18. For wheat reserved stock a subsidy of Rs 5 billion has been proposed.
The government has allocated Rs 8.045 billion for wheat supplied to Gilgit-Baltistan (arrears) for 2081-19 which is the same as in the current fiscal year. An amount of Rs 1.5 billion has been allocated for support of wheat/four export whereas Rs 2 billion has been earmarked for support of sugar export. An amount of Rs 500 million has been earmarked for reimbursement on account of paddy operation and Rs 1.5 billion on account of donation of wheat by the GoP.
The amount of subsidy for National Food Security and Research has been reduced to just Rs 1 million in 2018-19 against revised allocation of Rs 10.783 billion in 2017-18.
The government has also not allocated a single penny for subsidy on fertilizer during 2018-19. In revised allocation, the government gave Rs 10.782 billion during 2017-18. The amount of subsidy for sale of wheat to Fata has been kept at Rs 300 million in 2018-19 which is equal to allocation for 2016-17.
Comments
Comments are closed.