Daily Times

ISLAMABAD: The government on Friday announced Rs 138.846 billion subsidies, grants and transfers in the annual budget 2017-18, compared to the last year’s revised estimates of Rs 168.952 billion, showing a decrease of 17.8%.

The subsidies for WAPDA/PEPCO, KESC, Utility Stores Corporation of Pakistan, National Food Security and Research Division and PASSCO have been decreased for the fiscal year 2017-18. However, subsidy over sale of wheat in FATA has remained unchanged.

WAPDA/PEPCO: According the budget documents, the government has decreased subsidies to WAPDA/PEPCO to Rs 102.500 billion in 2017-18 from last year’s revised allocation of Rs102.580 billion, showing a decrease of 0.08%. The details of decrease in WAPDA/PEPCO subsidies are as under:

For Inter-Disco Tariff Differential, the government has reduced the subsidy and allocated Rs65 billion against the last year’s revised estimates as Rs91 billion, showing a net decrease of 28.57%.

Allocation for Tariff Differential for Agriculture Tubewells in Balochistan has been set at Rs 8.5 billion against last year’s revised allocation Rs1.680 billion, showing 406% increase. The government has allocated Rs10 billion ‘to pick up WAPDA/PEPCO receivables from FATA’ while last year the revised estimates was Rs 9.900 billion, showing a slight increase of 1%. The government has allocated Rs 4 billion in 2017-18 for ‘Inter-Disco Tariff Differential (Arrears)’ while last year it was Rs19 billion, showing a decrease of 79%. For the first time, the government has allocated Rs15 billion for ‘Power Sector PSEs Reforms’.

KESC: In the annual budget 2017-18, the government has allocated Rs15.500 billion as total subsidy while last year the allocation was Rs22.600 billion, showing a decrease of 31.4%. Details of these subsidies are as under:

Government allocated Rs15 billion ‘to pick up KESC’s Tariff Differential’ in 2017-18 while last year the allocation was Rs22 billion, showing a decrease of 32%. Allocation for ‘Tariff Differential for Agriculture Tubewells in Balochistan’ was Rs500 million while last year the allocation was Rs600 million, showing a decrease of 16.6%. The allocations for ‘Discos and K-Electric on account of Support package for industrial customers’ for 2017-18 has been set at zero as compared to last year’s estimates of Rs4.655 billion.

Utility Stores Corporation: Overall allocation in the current budget for subsidies to USC for Ramzan Package, sugar arrears, sales of pulses, rice, tea, etc has been set as Rs 4 billion against last year’s allocation of Rs7 billion, showing decrease of 43%.

Details of the allocations are:

Allocation for Ramzan Package for year 2017-18 was Rs 1.5 billion while last year the allocation was Rs2 billion, showing a decrease of 25%. Allocation for payment of sugar arrears has been set at Rs 2 billion while last year the allocation was Rs7 billion, showing a decrease of 71%. The government has announced Rs500 million for the first time for sales of pulses, rice, tea, etc at subsidized rates.

PASSCO: Over all subsidies to PASSCO for different operations have decreased to Rs16.545 billion for 2017-18 while last year the revised estimates was Rs18.554 billion, showing a decrease of 11%.

The details of PASSCO allocations are as under:

Allocation for wheat operation for current year has been set at Rs2 billion while last year the allocation was Rs7 billion, showing a decrease of 71%. For wheat reserve stock, the allocation has been set at Rs5 billion while last year the allocation was Rs7 billion, showing a decrease of 28.6%. The government has set zero allocation for freight subsidy on sugar export by TDAP while last year the allocation was Rs1.3 billion. The government has made allocation of Rs8.045 billion for wheat supplied to Gilgit-Baltistan (arrears) in the current budget while last year there was no such allocation. The government made allocation of Rs1.5 billion for support for wheat export while last year the allocation was Rs1.629 billion, showing a decrease of 8%.

While there is no allocation in the budget for support for sugar export in 2017-18, last year the allocation was Rs1.625 billion.

National Food Security and Research: The government has allocated Rs1 million for national food security and research division while last year the allocation was zero. The government has allocated zero amount for subsidy to fertilizer while last year the allocation was Rs25.098 billion.

Sale of Wheat in FATA The allocation for sale of wheat in FATA is Rs300 million while last year the same amount was allocated for this purpose.