ISLAMABAD, May 29: The government will present before the National Economic Council (NEC) on Thursday a Rs520 billion Public Sector Development Programme (PSDP) for next financial year, which is 19.5 per cent higher than current year’s Rs435 billion.

According to the final PSDP for 2007-08 available with Dawn, the federal programmes would get Rs335 billion, 24 per cent higher than the current year’s Rs270 billion. Practically, however, the federal projects would get Rs300 billion because the government will be facing an operational cash shortfall of Rs35 billion.

About Rs150 billion has been earmarked for provinces, 30 per cent more than current year’s provincial share of Rs115 billion. The allocation for earthquake rehabilitation has been cut by 30 per cent, bringing it to Rs35 billion from the current year’s Rs50 billion.

The total development outlay for the next year has, however, been put at Rs738.5 billion because a total of Rs218 billion would be spent by various corporations and companies with a majority shareholding of the federal government. As such, the total development outlay would be around 57 per cent higher next year compared with this year’s Rs470 billion.