Punjab slashes development budget by more than half

Published October 17, 2018
LAHORE: Work in progress on Orange Line Metro elevated track at Lakshmi Chowk.—White Star
LAHORE: Work in progress on Orange Line Metro elevated track at Lakshmi Chowk.—White Star

LAHORE: The Punjab government on Tuesday unveiled Rs238 billion Annual Development Programme (ADP) for 2018-19, which is 62.51 per cent down from Rs635bn set by the previous government for preceding fiscal year.

Explaining this massive decline, Finance Minister Hashim Jawan Bakht said “poor policies and financial irregularities of the previous government made inevitable slashing down of the development outlay".

The incumbent government’s allocation is markedly less than the previous government’s first year (2013-14) allocation of Rs290bn for ADP. In fact, throughout its five-year term, the former government increased its development allocation by 15pc per annum.

In tandem with the trend during last two years, ADP’s contribution remains concentrated in the social sector as 39pc of total allocation or Rs93.6bn goes to education, health, water supply and sanitation, social welfare, women development, and local government and community development for the remaining eight months of current fiscal year.

In addition to that, 28pc or Rs66bn has been earmarked by infrastructure development followed by services with 17pc or Rs39.3bn. Production sectors like agriculture, food, livestock, industries and tourism were allotted 8pc share or Rs19.7bn.

The ADP document ensures allocation to major initiatives including Rs5bn to expand Health Insurance Programme across the province, Rs5bn for Insaf programme for rural water supply and sanitation, Rs12bn for mother, child healthcare and nutrition and Rs1.5bn to revamp 25 district and 100 tehsil headquarters hospitals and upgradation of teaching hospitals.

Furthermore, Rs177 million has been set aside to construct buildings for 90 shelterless schools and Rs900mn to reconstruct 700 dilapidated school buildings and Rs1.1bn for 44 degree colleges.

The budget also set aside Rs433mn to provide skill training to 550,000 youth and Rs4.4bn funds to buy land for special economic zone in Faisalabad.

Afforestation of blank areas in irrigated plantations for combating smog and an umbrella programme for uplifting road network and connectivity are other hallmarks of the ADP.

The ADP also includes at least 26 foreign-funded projects finance by The World Bank. The cost and projects include $300mn for education sector reforms, $130mn for farm productivity improvement, $100mn for jobs and competitiveness plan, $50mn for tourism & heritage growth, $30mn for improving farm market, $200mn for green development and $200m for Punjab cities programme.

The Asian Development Bank is funding intermediate cities improvement, Jalalpur Canal, flood emergency, Trimmu & Punjnad barrages rehabilitation projects and enhancing public private partnerships.

Published in Dawn, October 17th, 2018

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