ISLAMABAD - Government has withdrawn subsidies worth Rs 120.1 billion, showing a decline of 47.62 per cent, for the next financial year 2009-10. According to the budget document, subsidies have been reduced to Rs 131.92 billion for 2009-10 from Rs 252 billion of the outgoing fiscal year 2008-09. The budget document reveals that huge subsidies provided to Wapda, KESC, textile and clothing sectors, oil refineries and import of DAP fertilisers have been withdrawn. However, subsidies being provided to TCP, USC and import of urea fertiliser have been enhanced. Moreover, Rs 2 billion have been kept for the Benazir Tractor Support Programme. According to details, subsidy being provided to the Water and Power Development Authority (Wapda) has been reduced to Rs 62.9 billion from Rs 92.84 billion provided during the outgoing fiscal year. Though subsidies provided to Wapda in GST and for agriculture tube wells have been slightly modified, yet the same provided for tariff differential between the distribution companies has been lowered from Rs 82 billion to Rs 10 billion. However, Rs 10 billion and Rs 30 billion have been kept for Fata and interest on Wapda Term Finance Certificates (TFCs) respectively. Subsidy being provided to Karachi Electric Supply Company (KESC) has been declined from Rs 18.8 billion to Rs 3.8 billion, as the subsidy provided to KESC on account of tariff differential has been lowered from Rs 17 billion to Rs 2 billion. Subsidy provided to Trading Corporation of Pakistan (TCP) has been enhanced from Rs 26.6 billion to Rs 30 billion. Subsidy on import of wheat has been enhanced from Rs 20 billion to Rs 25.5 billion while subsidy on import of sugar has been lowered by Rs 2.3 billion. The Utility Stores Corporation (USC) will get Rs 400 million more than the outgoing year, as the subsidy on sale of flour has been enhanced from Rs 0.5 billion to Rs 1.2 billion while that on Ramazan package has been increased from Rs 1.3 billion to 1.5 billion. However, Rs 0.5 billion have been withdrawn from the subsidy on ghee. PASSCO will get Rs 2 billion in subsidy on account of paddy operations while the subsidy provided to oil refineries has been reduced from Rs 70 billion to Rs 15 billion. Rs 81 million and Rs 4 billion subsidies to Pakistan Dairy Development Company and R&D support to textile and clothing sectors respectively during the outgoing fiscal year have been withdrawn, while those provided on the sale of edible commodities in Fata and Gilgit Agency and mark-up subsidy to spinning sector have been slightly modified. More importantly, the subsidy for import of urea fertiliser has been enhanced from Rs 3 billion to Rs 10 billion while the Rs 21 billion provided for the import of DAP fertiliser during the outgoing fiscal year have been withdrawn. Similarly, the Rs 7.62 billion subsidy for phosphatic and pottasic fertilisers has been withdrawn.