Home Business Rs699 Billion Allocated For Subsidies in Budget 2022-23

Rs699 Billion Allocated For Subsidies in Budget 2022-23

The government has earmarked a total of Rs699 billion worth of subsidies for various sectors in the fiscal year budget 2022-23.

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Budget 2022-23

The government has earmarked a total of Rs699 billion worth of subsidies for various sectors, of which Rs490 billion worth of subsidies has been proposed only for the power sector in the fiscal year 2022-23.

As per the budget documents, Rs490 billion worth of subsidies has been proposed for the power sector out of the total Rs699 billion worth of subsidies for next FY 2022-23.

According to the details, Independent Power Producers (IPPs) will receive Rs180 billion worth of subsidy, while Power Holding Private Limited (PHPL) will obtain Rs35 billion subsidy during the FY 2022-23 and Rs225 billion has been allocated for Inter-DISCO tariff differential.

Finance Minister Miftah Ismail, while unveiling the budget, said Prime Minister Shehbaz Sharif believed that maximum relief should be given to the people during these hard times, especially to those segments who cannot withstand the coming storm of price hikes.

“The rich can thus provide much-needed relief to the poor,” he added. According to the budget documents, subsidies to be given through Wapda/Pepco will amount to Rs275bn; subsidies to be given through K-Electric will account for Rs80bn; subsidies for Power Holding Private Limited & independent power producers will account for Rs215bn, and petroleum subsidies will account for Rs71bn.

In total, fuel and power subsidies will account for Rs641bn of the total Rs699bn set aside for subsidies. Passco will be given Rs7bn and the Utility Stores Corporation will be subsidised with Rs17bn.

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