KARACHI, June 10: Sindh has set total development outlay for 2005-06 at Rs28.750 billion, which is about 40 per cent higher over the current year’s revised estimates of Rs20.445 billion. This will include Rs24 billion for Public Sector Development Programme (PSDP) and Rs4.75 billion as foreign projects assistance.
The province would almost meet the Public Sector Development Programme (PSDP) from its own resources, which would include Rs17.188 billion by provincial government and a nominal Rs22.500 million Japanese grant.
The Sindh Finance Minister, Syed Sardar Ahmad, who presented a revenue-deficit budget for fiscal 2005-06 in the Sindh Assembly here on Friday, said that the PSDP 2005-06 of Rs24 billion is 33.6 per cent more than the revised estimates of Rs17.96 billion of 2004-05.
However, it was encouraging that unlike in the past the utilization would be little over Rs20.445 billion out of the allocated development outlay of Rs20.805 billion. There is higher utilization of development funds by district governments as per the revised estimates at Rs6.884 billion. But provincial government’s utilization of development budget remained lesser and stood at Rs11.051 billion as per revised estimates.
The district governments would be provided Rs6.789 billion out of Rs24 billion for their development plan, leaving an amount of Rs17.21 billion for provincial development portfolio, out of this, an amount of Rs8.51 billion or 49.5 per cent is earmarked for 471 on-going schemes and an amount of Rs8.70 billion or 51.5 per cent has been allocated for the 426 new schemes.
The federal government has also agreed to enhance share of Sindh based schemes in federal PSDP 2005-06. In federal PSDP 2004-05, Rs12 billion were earmarked for the schemes located in Sindh, for the year 2005-06 this allocation has, however, been enhanced and kept at Rs20.15 billion.
Giving details of development plans the Sindh Finance Minister said that improvement of road infrastructure has been given highest allocation, which was increased by 20.35 per cent to Rs3.50 billion against Rs2.20 billion allocation in 2004-05. This would construct 155km new roads and improve 175km existing roads. Foreign assistance of Rs2.04 billion will also be available under Sindh Road Sector Development Project (SRDP).
In next year Public Sector Development Programme, an amount of Rs1 billion has been allocated for education sector, that is, 51.5 per cent more than current year’s allocation of Rs0.66 billion. An amount of Rs0.60 billion will also be available as foreign project assistance.
District governments would also allocate substantial amount for education sector through their share of development allocation. This sector would also receive funds on the recommendations of MPAs under “priority programme”. The provincial government planned to upgrade the primary schools to middle and middle to high and higher secondary level.
An amount of Rs0.79 billion had been allocated for health sector, which was 32.5 per cent over and above current year’s development outlay. Giving details, he said Rs0.60 billion had been allocated for 53 on-going schemes and Rs0.20 billion for 30 new schemes. A foreign project assistance of Rs0.19 billion would also be available for this sector, he added.
The agriculture sector had been allocated Rs0.59 billion which was 44 per cent more than the current year allocation of Rs0.41 billion. Foreign project assistance would be Rs1.02 billion. The Federal Government would provide Rs0.60 billion for schemes funded by it. Therefore, this would take total investment to Rs2.2 billion.
The PSDP 2005-06 would provide Rs0.57 billion for rehabilitation of infrastructure of six industrial estates in the province—SITE Karachi, Nooriabad, Hyderabad, Kotri, Sukkur and Nawabshah.
Similarly, eight small industrial estates were also going to be upgraded with an estimated cost of Rs68.5 million. Another small industrial estate over an area of 100 acres would be developed in Karachi at an estimated cost of Rs106 million. Around 552 industrial plots of different categories would be developed and 50 per cent would be reserved for women entrepreneurs.
The provincial government has allocated higher funds at Rs4 billion for three special packages in next year’s PSDP as against current year’s allocation of Rs3 billion. Under this Rs2 billion would be given for Karachi package, Rs1 billion for Hyderabad package and Rs1 billion for rural development package.
After discovery of coal in Thar, this sector had received budget priority so that the valuable coal reserves could be utilized for power generation in next fiscal year. An amount Rs0.99 billion which is 55.6 per cent higher than the current year has been allocated for this sector.
The irrigation and power sector would receive Rs1.10 billion in next year’s PSDP, out of this Rs0.57 billion had been proposed for ongoing schemes including an allocation of Rs100 million for scheme ‘Assuring Water Supply for Karachi.” Rs198.93 million had been proposed for new schemes of water sector, village electricity supply programme had also been provided an allocation of Rs100 million.
The federal government was providing Rs8.50 billion to fund a number of major projects of this sector in Sindh. Right Bank Outfall Drain (RBOD) phase II, Revamping of Sindh Irrigation and Drainage System and project of lining of channel and distributaries were a few among these schemes.
A short-term plan costing Rs1.57 billion had been prepared under Thar Package as announced by the Prime Minister. The federal government had agreed to provide Rs1.13 billion, whereas the provincial government would contribute the remaining amount of Rs0.47 billion. This plan included schemes of drinking water, small cottage industries, irrigation, health, education and village electricity supply schemes.
The federal government had already released an amount of Rs0.60 billion whereas Rs0.25 billion was provided in next year’s federal PSDP. The Sindh government had allocated Rs0.30 billion in PSDP 2005-06.
