Rs 97 billion allocated outside PSDP: all subsidies for phosphatic, potassic fertiliser stopped

Outside Public Sector Development Programme (PSDP), the government has allocated Rs 97 billion against the revised estimates of Rs 45.5 billion in 2010-11. Giving another extension to Prime Minister''s Fiscal Relief Package for FATA/PATA, the government approved Rs 1 billion in damage compensation to residents in war against terror.
However, next year''s allocation has shown a decline against the current allocation of Rs 4.425 billion. For relief, rehabilitation, reconstruction and security of internally displace people (IDPs), the government allocated Rs 5 billion outside PSDP for next fiscal year.
The allocation for Benazir Income Support Program (BISP) has been increased to Rs 50 billion for FY 2011-12. Current year''s allocation is Rs 35 billion. The BISP management asked for Rs 120 billion to give monthly stipends of Rs 1,000 to seven million households, but the government has allocated only Rs 50 billion. Over the past two fiscal years, the BISP has not been able to meet its target.
Unlike zero allocation in current fiscal year, Benazir Tractor Support Program has been allocated Rs 2 billion for next year. Similarly, the allocation for Crops Loan Insurance has been increased to Rs 500 million from current year''s allocation of Rs 292 million.
For encouragement of SME sector, the government has allocated Rs 45 million. Export Investment Development Fund of Rs 10 billion has been approved. The size of SME Development Support Fund has been reduced to Rs 40 million from Rs 300 million.
The government has approved for reconstruction in Afghanistan a grant of Rs 2.5 billion and has withdrawn the grant for Pakistan Poverty Alleviation Fund.
The government approved Rs 12 billion subsidy to Trading Corporation of Pakistan (TCP) for import of urea fertiliser. All subsidies to manufacturers of phosphatic and potassic fertiliser and importers of phosphatic and potassic fertiliser have been stopped. In the category of other expenditure, the government has allocated Rs 14 billion.