ISLAMABAD, March 22: The government is expected to present federal budget 2002-03 in early May instead of traditional budget month of June, well-placed official sources told Dawn.

A final decision to this effect will be made soon after the return of Finance Minister Shaukat Aziz from Mexico where he has gone to attend an international conference.

Three factors are being quoted for pulling the budget season a month ahead of normal schedule. Firstly, to cash in on goodwill among the multilateral and bilateral donors in the budget projections before it fades out, secondly to provide sufficient time for election activities, and thirdly the proposed presidential referendum by the end of May or early June.

That the $109 million instalment of the Poverty Reduction and Growth Facility would be available in April, a fresh budgeting would be opportune to cover the additional expenditure arising out of the international and regional border situation, weaknesses in revenue collection and repeated revisions in targets and referendum and election expenditure, the sources said.

“The (budget) exercise has already begun,” said a government source, indicating that the National Economic Council would perhaps be meeting in the second half of April to approve federal-funded projects in the provinces.

The proposal for announcing budget in May has informally been discussed by the finance ministry and general headquarters, the source added.

Subsequently, the whole process would be planned in a way that even all the provincial budgets are announced before the close of May, the sources said.

The President has already started consultations with politicians about the proposed presidential referendum after having discussed its pros and cons with corps commanders early this week.