Prime Minister Mohammadmian Soomro has ordered the cancellation of the order for procurement of five helicopters for $67.7 million in the current financial year, it is reliably learnt.
On being informed that the purchase of two corporate and three standard AgustaWestland AW-139 helicopters by the Cabinet Division was not within the sanctioned budget approved by the parliament and that the purchase would form part of the supplementary grant - over and above the budgeted items - the Prime Minister did not approve of the procurement order, ostensibly due to existing budgetary pressures arising out of an all time high level of subsidies.
At present, the government has provided Rs 100 billion from the budget on account of non-revision of electricity tariff. This is Rs 53 billion more than the budgeted subsidy of Rs 47 billion. On account of POL, a Rs 135 billion subsidy cost has been incurred - as against the Rs 25 billion budgeted outlay while wheat subsidy on 1.5 million tons imports is expected to hover around Rs 35 billion.
In addition, Rs 14 billion is yet to be paid to the industries for R&D. Although, this amount was announced in the budget speech and duly approved by the parliament, it was not part of the subsidy bill.
It is also learnt that the expenditure wing of the Federal Ministry of Finance has advised its Financial Advisors in the various ministries not to approve any expenditure outside the approved budget and also refer big ticket expenditure items to the Ministry before opening of letters of credit with banks.