Subsidies sharply cut by 40pc for next fiscal year

Subsidies sharply cut by 40pc for next fiscal year

ISLAMABAD: The federal government has decided sharp cut in subsidies during fiscal year 2020/2021. An amount of Rs209 billion has been allocated as subsidies for next fiscal year as compared with Rs349.5 billion of current fiscal year, showing reduction of 40 percent.

According to budget documents for fiscal year 2020/2021 released on Thursday, a subsidy of Rs124 billion has been allocated to WAPDA/PEPCO during the next fiscal year as compared with Rs201 billion of current fiscal year.

The government allocated subsidy of Rs30 billion to Naya Pakistan Housing Authority. Further an amount of Rs6 billion allocated for fertilizer plant subsidy (Engro, Fatima) during current fiscal year. The government already disbursed subsidy amount of Rs7 billion under this head.

The subsidy to KESC has been reduced to Rs25.5 billion during next fiscal year from Rs59.5 billion of current fiscal year.

The government has granted subsidy amount of Rs43.5 billion through Utility Stores Corporation (USC) during current fiscal year. However, during next fiscal year the government allocated subsidy of Rs3 billion for Ramazan Package through USC.

An amount of Rs7 billion has been allocated as subsidy to PASSCO for wheat operation and wheat stock during next fiscal year. The government granted Rs15.5 billion subsidy under this head during current fiscal year.

The government has allocated no subsidy to National Food Security and Research Division during the next fiscal year.

Leave a Reply

You have to agree to the comment policy.