June 12, 2008	Thursday	Jamadi-us-Sani 07, 1429

ISLAMABAD, June 11: The government on Wednesday unveiled Rs549 billion Public Sector Development Programme (PSDP) for 2008-09 in contrast to the outgoing year’s allocation of Rs520 billion, showing a mere 5 per cent increase which, if calculated on the basis of double-digit inflation, would mean a reduction.

The PSDP allocation includes Rs26.71 billion for Earthquake Reconstruction and Rehabilitation Authority (Erra) and Rs170 billion for the provincial annual development programmes, against Rs150 billion allocated in the current outlay.

The sectoral distribution of the federal PSDP is as follows: Rs141.689 billion for infrastructure development, an increase of 44 per cent, and Rs197.565 billion have been earmarked for the social sector, or 51 per cent of the total PSDP. Other sectors like agriculture, industry and minerals have been allocated Rs31 billion.

Keeping in view the decline in agriculture sector’s growth, the new PSDP shows an increased allocation of Rs20.51 billion, against 15.79 billion earmarked in the outgoing fiscal.

The next fiscal PSDP contains an increase of Rs3.1 billion in the development expenses of the Pakistan Atomic Energy Commission, which was raised to Rs15 billion while allocations for Wapda’s water sector have been cut by about a billion rupees, and set at Rs62.42 billion, against the current fiscal’s Rs63-billion-plus and the power sector’s allocations have been reduced to Rs14 billion, against Rs20 billion of the current year.

Allocations for special programmes, which stood at Rs34 billion in the current fiscal outlay, has been reduced to Rs24.42 billion.

Finance division, however, gets an all-time high allocation of Rs50.75 billion, an increase of Rs16.96 billion, but the education division gets only Rs6 billion, reflecting no increase over the current outlay. The provision for the health division have been increased to Rs19 billion against the previous year’s Rs14 billion.

The communication division allocations were enhanced to Rs36.81 billion, against Rs29.61 billion earmarked in the outgoing fiscal. Allocations for Azad Kashmir and Northern Areas have been set at Rs17.6 billion, against Rs13.7 billion allocated during the current year, and Rs8.6 billion have been set aside for States and Frontier Regions.

The Planning and Development department has been allocated Rs11 billion, against the previous allocation of Rs14.43 billion and the interior division gets Rs6.9 billion in contrast to the outgoing year’s Rs 9.5 billion.

Allocations for the defence division have been ‘frozen’ at Rs5 billion, while funds for law and justice division has been slashed to Rs2.38 billion from Rs4 billion, while the amount for cabinet division have been increased to Rs2.87 billion from Rs494 million, housing and works, which is planning to construct low-cost houses, gets an increased allocation of Rs4 billion, against Rs1.2 billion.

Allocations for science and technology has been reduced to Rs3 billion from Rs3.6 billion, labour and manpower division to Rs123 million from Rs198 million, local government gets Rs108 million, culture division Rs413 million, sports division Rs350 million, youth affairs division Rs33 million and tourism division Rs18 million.

The federal component of the PSDP has been sub-divided and federal ministries get Rs371 billion, Special Areas (AJK, FATA and Northern Areas) Rs26 billion, Special Programmes (KPP and others) Rs63 billion and corporations (like Wapda and NHA) Rs51 billion.

The government intends to build hydroelectric power projects and dams to overcome energy and water shortages. In addition to new projects like Prime Minister’s Pro-poor Income Support Programme, a revolving fund called “Housing for All’ has been set up for government servants and introduces the PM’s special initiative for ‘white revolution’ and village product specialisation.

The government also intends to expand and rehabilitate basic health units while the number of lady health workers are set to be increased from 100,000 to 200,000.