ISLAMABAD, May 7: The government is expected to allocate Rs340 billion to Rs345 billion for the next year’s public sector development programme (PSDP) to maintain high economic growth, it is learnt.
Sources told Dawn on Sunday that the finance ministry was expected to propose allocation of about Rs320 billion for the PSDP on the basis of priorities committee estimates, showing an increase of about 17 per cent over the current year’s Rs272 billion development programme.
However, the Planning Commission is likely to seek more funds for the development programme because of higher than estimated revenue collection.
Some major programmes are usually provided funds on the recommendations of the president and the prime minister at the National Economic Council meeting. “We expect final size of the PSDP to range in Rs340-345 billion,” showing over 25 per cent increase over the current year’s development programme, an official said.
The sources said the Planning Commission had not received recommendations of the priorities committee but they hoped that the finance ministry would suggest allocation of Rs320 billion for the PSDP to remain within the medium term development framework.
This would include about Rs235 billion for federal development plans and Rs85 billion for provincial projects. For the current year, Rs272 billion was allocated for the programme — Rs204 billion for federal and Rs68 billion for provincial plans.
The next year’s development philosophy would be based on the objectives of accelerating output growth, balanced and equitable development, upgrading of physical infrastructure and achievement of millennium development goals. Focus would remain on infrastructure development and poverty reduction, the sources said.
The sources said the annual plan coordination committee had tentatively been scheduled to meet on May 22 to consider recommendations of the Planning Commission on the basis of resources availability estimates of the finance ministry.
The prime minister, said the sources, would attend the inaugural session of the committee’s meeting and then authorise the Planning Commission deputy chairman to listen to the demands of the federal ministries and provincial finance and planning ministers during the day-long deliberations.
The committee’s recommendations for funding requirements would be finally considered by the National Economic Council on May 27 to finalise the development budget.
The only point that might hinder the Planning Commission from securing over Rs340 billion for the development programme was the lack of institutional capacity to fully utilise the allocated funds, the sources said.
