ISLAMABAD - The government has allocated Rs271.5 billion as subsidies for FY2019-20 against the revised estimates of Rs255 billion of the outgoing financial year, showing an increase of 18.4 per cent.

According to the budget documents, the government has allocated Rs191 billion as subsidy for the power sector for the next fiscal year, which was Rs189.9 billion during the outgoing year. Minister of State for Revenue Hammad Azhar informed the National Assembly the government has allocated Rs200 billion as subsidy for protecting poor class of the society, which is using 300 unit of electricity every month, from the power hike.

The breakup of Rs191 billion showed the government earmarked Rs162 billion for inter-Disco tariff differentials as compared to Rs130 billion for the outgoing year. The government allocated Rs8 billion as subsidy for tariff differentials for agriculture tube-wells in Balochistan. Rs18 billion to pick up Wapda/PEPCO receivables from merged districts of KP and Rs3 billion subsidy to Wapda on account of tariff differential for AJ&K. Meanwhile, an amount of Rs59.5 billion has been earmarked for KESC for FY2019-20 as compared to Rs40.5 billion for outgoing year 2018-19.

However, the government has reduced the subsidy given at the Utility Stores Corporation from Rs6 billion to Rs5.5 billion for the next year. The government has kept Rs2.5 billion for the Ramazan package, Rs3 billion for the payment of sugar arrears.

Meanwhile, the government has also decreased the subsidy amount for Passco to Rs15.5 billion from Rs18.3 billion for the upcoming financial year. The government has kept Rs2 billion for wheat operation, Rs 5 billion for wheat-reserved stock and Rs8 billion for wheat supplied to Gilgit-Baltistan for the next fiscal year. According to the budget documents, the government has allocated Rs500 million for the reimbursement on account of donation of wheat by the government of Pakistan.

The government has withdrawn subsidy worth of Rs300 million for next fiscal year, which was allocated for the sale of wheat in Fata in last fiscal year. The government has not allocated any subsidy billion for National Food Security and Research Division for the next fiscal year.