Saturday, October 19th, 2024
Home »Stocks and Bonds » Pakistan » Subsidies surge to Rs 453.3 billion till December: PRSP

  • News Desk
  • Apr 25th, 2012
  • Comments Off on Subsidies surge to Rs 453.3 billion till December: PRSP
Subsidies skyrocketed to Rs 453.3 billion between July-December 2011-12, Rs 286.8 billion more than the budgetary target for the entire year and Rs 58 billion more than the revised estimates for 2010-11. The ministry of finance's Poverty Reduction Strategy Paper said. The document was issued on the ministry's website.

The paper also noted exclusion of what it termed as one-off payment of a whopping Rs 391 billion from the total budget deficit of Rs 532.5 billion on account of debt consolidation. However, this amount is shown under subsidies, according to a well-placed source in the ministry of finance, with the objective of showing an outlay on development and social sector expenditure. This could be technically e defined as a transfer payment, rather than contributing to the development of either physical or social infrastructure.

The inclusion of this amount significantly increased the social sector expenditure during the first six months of the current fiscal year against the same period last year. Additionally, the data itemizes outlay on law and order to the tune of Rs 87.347 billion, which is technically not a component of PRSP.

Data analysis showed that pro-poor budgetary expenditure under the Benazir Income Support Programme (BISP) declined by 5.1 percent, from Rs 17.27 billion in July 2010-December 2011 to Rs 16.382 billion during July 2011-December 2012. Expenditure under Baitul Maal also witnessed a decline in the comparable period, from Rs 1.6 billion to Rs 1.2 billion.

The PRSP expenditure showed a significant increase in releases to parliamentarians under People's Works Program-I and II during the first six month of the current fiscal year against last year. Total releases under PWP-1 increased to Rs 2.222 billion in the first six months of the current fiscal year against Rs 662 million for the same period last year. Under PWP-II, the amount released rose to Rs 2.902 billion against Rs 200 million for the same period last year. The federal government spent Rs 408 billion on current expenditure and Rs 44 billion on development expenditure.

Copyright Business Recorder, 2012


the author

Top
Close
Close