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Tag: subsidies

  • Massive cut in subsidies to curtail current expenditures

    Massive cut in subsidies to curtail current expenditures

    ISLAMABAD: Pakistan has announced massive cut in subsidies and allocated an amount of Rs699 billion for the fiscal year 2022/2023 as compared with the amount of Rs1.515 trillion in the outgoing fiscal year.

    The drastic cut in subsidies has been aimed at curtailing current expenditures to reduce the fiscal deficit.

    READ MORE: Petroleum levy to generate Rs750 billion

    Pakistan on June 10, 2022 presented its federal budget 2022/2023 which estimated current expenditure at Rs8.69 trillion during the next fiscal year as compared with estimated Rs8.516 trillion in the outgoing fiscal year.

    An amount of Rs3.95 trillion has been allocated for mark-up payments for the fiscal year 2022/2023 as against Rs3.14 trillion in the outgoing fiscal year.

    READ MORE: FBR assigned tax collection target of Rs7 trillion in 2022/2023

    A whopping Rs3.44 trillion has been earmarked for mark-up payment on domestic debt during the next fiscal year as compared with Rs2.77 trillion in the current fiscal year. Meanwhile, an amount of Rs511 billion has been allocated for mark-up payment on foreign debt during next fiscal year.

    The government estimated an amount of Rs530 billion for payment of pension during the next fiscal year. This amount includes Rs395 billion for the pension of military persons and Rs135 billion for the pension of civil employees.

    READ MORE: Budget 2022/2023: Salient features of customs duty act

    The government allocated an amount of Rs1.52 trillion for defence affairs and services during fiscal year 2022/2023 as compared with the estimated amount of Rs1.48 trillion in the outgoing fiscal year. The actual allocation was Rs1.37 trillion for the fiscal year 2021/2022.

    An amount of Rs100 billion has been allocated for pay and pension during the next fiscal year.

    READ MORE: Budget 2022/2023: Salient features of sales tax

    The government earmarked an amount of Rs550 billion for running of civil government during fiscal year 2022/2023 as compared with Rs530 billion in the current fiscal year. The actual allocation for running of civil government was Rs479 billion in fiscal year 2021/2022.

  • 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.