Rs138.84 billion subsidies will be given to poor

ISLAMABAD: The government has proposed to allocate Rs138.84 billion for subsidies in the federal budget 2017-18 to alleviate the impact of inflation on citizens, especially  the poor segment of the society.

Last fiscal the estimate of subsidies were Rs140.60 billion which were later revised and increased to Rs168.95 billion due to increase in the subsidy of Wapda/ Pepco for tariff determination and subsidy to farmers in fertilisers.

According to budget estimates for 2017-18, the allocation of Rs102 billion allocated for the subsidy to Wapda/ Pepco and out of it Rs65 billion for the intra-Disco tariff differential, Rs8.5 billion for tariff differential for Agriculture Tubewell in Balochistan, Rs10 billion to pick up Wapda/ Pepco receivables from Fata, Rs4 billion inter-disco tariff differential (Arrears) and Rs15 billion for Power Sector PSEs reforms.

In the budget estimates, Rs15.5 billion were allocated to pick up KESC tariff differential; Rs4 billion for subsidy to Utility Stores Corporation; and out of it Rs1.5 billion are allocated for Ramazan Package and Rs 2 billion for payment of Sugar arrears and Rs500 million for the sale of pulses, rice, tea, etc at subsidised rates.

According to budget estimates for 2017-18, Rs16.545 billion are allocated for subsidy to Passco and out of it Rs2 billion for wheat operations, Rs5 billion for wheat reserved stocks, Rs8.04 billion for wheat supplied to Gilgit-Baltistan (Arrears) and Rs 1.5 billion for support for wheat export. In the budget estimates, Rs300 million are allocated for the sale of wheat in Fata.