ISLAMABAD: The Power Division has sought technical supplementary grant (TSG) of Rs 114.5 billion from current financial year’s power subsidy in accordance with the Finance Division’s disbursement guidelines, well-informed sources told Business Recorder.
The Power Division, in its proposal has stated that an amount of Rs140 billion was budgeted for CFY 2020-21 as power sector subsidy, which was subsequently enhanced to Rs. 147 billion under the head "Lump sum Provision for Power Sector Subsidy (IB-2219).” The Power Division further stated that Rs32.50 billion have already been disbursed pursuant to the ECC on October 26, 2020, whereas the remaining allocation is available for utilization by the Power Division over the remaining period of the CFY.
The Finance Division used to release the subsidies under different heads after verification by Ministry of Energy (Power Division). The Finance Division has now advised to approach the ECC of the Cabinet along with the suggested allocations to transfer the remaining amount in Power Division's demand through TSG which may be utilized against the subsidy claims for the CFY2020-21 exclusively in accordance with Finance Division's disbursement guidelines.
Subsidy budget 2020-21 was Rs 147 billion of which Rs 32.5 billion has already been released, which implies that subsidy of Rs 114.5 billion is still pending.
The remaining amount i.e. Rs. 114.5 billion will be required to transfer in Power Division's Demand through TSG which may be utilized against the subsidy claims for the CFY 2020-21.
The ECC of the Cabinet may allocate Rs. 114.5 billion as TSG from CFY power subsidy budget to the Power Division that will be utilized against the CFY subsidy claims exclusively in accordance with Finance Division's disbursement guidelines.
Copyright Business Recorder, 2021