Rs 120 billion has been allocated for inter-Disco tariff differential against revised allocation of Rs 412.018 billion during the ongoing fiscal year. Initially, Rs 50 billion had been allocated for this purpose. However, no amount has been earmarked to pick up interest payment for TFCs against Rs 55.7 billion allocated in 2011-12. Likewise not a single penny has been allocated for adjustment of additional surcharge against GST despite the fact that Rs 10 billion had been allocated in 2011-12.
Budget documents further disclosed that Rs 100 million has been allocated for exchange rate differential for USAID, Rs 870 million as 12.5 percent GoP share for agriculture tube wells and Rs 4 billion as tariff differential for agriculture tube wells in Balochistan. The government did not allocate any amount for these three categories during 2011-12.
The government has also earmarked Rs 50.317 billion as subsidy to KESC against revised allocation of Rs 45.238 billion and initial allocation of Rs 24.588 billion. Of this, Rs 50 billion has been earmarked to pick tariff differential against revised expenditure of Rs 45 billion and initial allocation of Rs 24 billion. In budget Rs 317 million has been allocated to pick up payable to PSO and PKGCL against Rs 238 million allocated for 2011-12.
The government has also allocated Rs 10 billion as subsidy to Trading Corporation of Pakistan (TCP) to reimburse losses on account of rice operations for Sindh growers against revised amount of Rs 1.082 billion. No amount has been allocated for sugar operation and import/ export of wheat operation. In 2011-12 budget, Rs 17 billion had been allocated for this purpose. In addition 26 billion has been allocated to TCP for import of urea under development expenditure outside PSDP.
Utility Store Corporation (USC) will get Rs 6 billion subsidy in 2012-13 against Rs 2 billion allocated for 2011-12, of which Rs 2 billion will be utilised for Ramazan package and Rs 2 billion on sale of sugar. An amount of Rs 5.148 billion has been allocated for subsidy to Passco against revised expenditure of Rs 18.697 billion and initially allocated amount of Rs 4.074 billion. Of this amount Rs 1.148 billion will be spent on wheat operation, Rs 4 billion for wheat reserve stocks. No amount has been allocated for paddy and Mung operations and nothing was spent for this purpose in 2011-12 despite an allocation of Rs 10.5 billion.
The government has also allocated Rs 3.4 billion as subsidy for Fauji Fertiliser Bin Qasim Limited in 2012-13 against Rs 162 million in 2011-12, indicating massive increase, Rs 7.7 billion for oil refineries and OMCs/other against Rs 7.921 billion in 2011-12, Rs 270 million for sale of wheat to Fata, Rs 775 million for sale of wheat to Gilgit Baltistan and Rs 5 million for sale of salt to Gilgit Baltistan.
Budget documents reveal that total amount of subsidies will be Rs 208.595 billion, 60 percent less than revised expenditure of Rs 512.292 billion. Initially the government had allocated Rs 166.448 billion as subsidy for 2011-12. Finance Minister announced in the National Assembly that Rs 183 billion has been allocated for the power sector and the cabinet has authorised him to extend whatever funds are required to resolve power crisis in the country.