April 4, 2003	Friday	Safar 1, 1424

ISLAMABAD, April 3: The federal government on Wednesday kicked off budget making exercise with estimates that water sector allocations would be enhanced by around 150 per cent (from Rs10 billion to Rs24 billion) during the next fiscal year 2003-04 to complete some vital ongoing projects.

The government will complete the sector-wise review of fund utilization during 2002-03 in its priority committee meetings over the next two week and will finalize next year budget projections for submission to the Annual Plan Coordination Committee (APCC).

Official sources told Dawn the first priority committee meeting took up for threadbare discussion the water sector utilization during 2002-03 and next year’s projections.

The priority committee meetings are presided over by an additional secretary of the Ministry of Finance. The first meeting was also attended by sector chiefs of the Planning Commission and representatives of the Ministry of Water and Power and Wapda.

The sources told Dawn the meeting estimated to earmark around Rs24 billion for the water sector against Rs10.9 billion allocated last year.

These sources said Wapda was expected to utilize around Rs9.3 billion by end of the current fiscal year which was over 90 per cent of the total budgetary allocations.

The Ministry of Water and Power had demanded Rs42 billion for the next year but the Planning Commission objected to the viability of such a big investment in one sector alone and proposed to earmark Rs24 billion.

The sources said the Planning Commission had taken into account the 10-year perspective plan for the water sector to synchronize public sector allocations for the next year.

The meeting noted with satisfaction that Wapda would be able to utilize more than 90 per cent of its allocated funds keeping in mind limited time available to it to start some mega projects.

The sources said allocations for the water sector were being increased because some important projects like Gomal Zam, Sabakzai dam, Kachi canal, Mirani dam and raising of Mangla dam required substantial funds as these were now in full progress.

Under normal procedure, estimates finalized by the priority committees are submitted to the APCC for approval which is being scheduled for mid of May to be followed by the National Economic Council (NEC).

The estimates finalized by the priority committees are usually remain unchanged, but the APCC had the power to make adjustments on the basis of availability of funds and sometimes on strong protests from the provincial governments.