LAHORE: The Shahbaz Sharif government could spike the total provincial development investment by 14-15 per cent to around Rs630bn-Rs635bn during the next fiscal from the original estimates of Rs550bn for the outgoing financial year as it plans to divert larger resources for popular schemes like clean drinking water to southern districts and complete the ongoing energy, transport and other projects to woo the voters.
Earlier, the officials were projecting the development spend to be just above Rs600bn in line with the indicative target set by the federal government for the province.
The budget is being presented today (Friday).
The size of the provincial consolidated fund – including domestic commercial borrowings for state trading in wheat – is proposed to grow substantially to significantly above Rs1.9tr from Rs1.8tr for the present year, according to provincial finance department officials.
15pc spike in outlay likely for ‘election budget’
The major identifiable projected revenue and development receipts for 2017/2018 include Rs1.16tr in federal transfers, provincial own tax and non-tax collection of about Rs300bn, and Rs117.1bn foreign project assistance (including Chinese loans of Rs93.4bn for Orange Line metro train in Lahore). Other smaller sources of revenue include net hydel profits and hydel profit arrears (of Rs38bn), federal grants, recovery of loans and advances, and so on.
The government has received 2.4pc less money in federal transfers this year compared with the estimated amount of above Rs1.04tr. Similarly, it had estimated receipt of Rs85bn in loan for Orange Line metro train from China. But only Rs34.5bn were disbursed.
“The thrust of next budget will be completion of ongoing transport, energy, road development and infrastructure schemes. It is important to complete these projects in order to improve public service delivery in the province. And, of course, the next fiscal is going to be election-year and it is crucial to complete the ongoing projects before the 2018 polls,” a senior official told Dawn on Thursday.
Officials say the last budget of the current tenure of the ruling Pakistan Muslim League-Nawaz will generously allocate resources for goodies and freebies for almost everyone, especially rural population, to win over votes in the wake of a strong challenge from Imran Khan’s Pakistan Tehreek-i-Insaf (PTI).
Published in Dawn, June 2nd, 2017
