Subsidy on wheat, oil products, power cut

ISLAMABAD - The government has earmarked Rs 295 billion for subsidies in the budget 2008-09, bringing it down from Rs 407 billion allocated last year, thus registering the decrease of 28 percent. The subsidy will be extended on POL products, power tariffs, wheat, fertilizers and other main items.    The subsidy of the budget estimates 2008-09 is 2.4 per cent of the GDP, which was 1.1 per cent in budget estimate 2007-08 and in revised estimates 2007-08 at 3.9 per cent of GDP. WAPDA will be provided RS 74 billion subsidies in the year 2008-09, which was RS 113 billion of the revised 2007-08. Inter-disco tariff differential would be provided RS 65 billon compared to RS 87 billion of the revised last year. The government would give RS 13 billion subsidies to KESC as it was RS 19 billion during the last year. For Agriculture tube well in Balochistan is provided RS 198 million subsidy, as it was RS 133 million of revised 2007-08.         Trading Corporation of Pakistan (TCP) is allocated RS 266 billion subsidy for the year 2008-09 previously it was RS 465 billion. On the import of wheat the government is providing RS 20 billion subsidy, while on the import of sugar the amount of subsidy is RS 6 billion. Utility Stores Corporation (USC) is provided RS 2.7 billion subsidy against RS 46.5 billion of the last year in which RS 1.5 billion are allocated to the ghee package while 5 million to the sales of pulses. Similarly RS 5 million are allocated for the sale of Atta (flour) and RS 2 million for the Ramzan package. PASSCO are provided RS 14.2 billion subsidies, which was RS19.6 billion last year. Oil and refineries, OMCs are allocated with RS 140 billion, as it was RS 175 billion last year.   Pakistan Dairy Development is given RS 81 million subsidies, as it was RS 200 million last year. For the sale of wheat in FATA, the government allocated RS 195 million similarly for the sale of wheat salt, and sugar in Gilgit Agency are provided with RS 606 billion subsidies.    The current subsidies are 260 billion, which was 377 billion in the last year. The development subsidies are 35 billions as it was 29 billion last year.   For the import of urea fertilizer 3 billion subsidies are allocated, as it was 4 billions in the previous year. Similarly 12 billion are provided to DAP fertilizers, which was 5.5 billion in the last year.

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