NEC gives go-ahead to Rs1.030 trillion federal PSDP budget for FY19

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ISLAMABAD: National Economic Council (NEC) amidst the boycott by three provincial chief ministers gave go-ahead to a Rs1.030 trillion federal development budget for the upcoming financial year 2018-19.

This was proclaimed by Ahsan Iqbal who holds the dual portfolio of planning and interior minister on Tuesday, reported Express Tribune.

Interestingly, senior finance ministry officials, on the contrary, said after ending of the NEC meeting that Q block would not finance the Rs1.030 trillion Public Sector Development Programme (PSDP) for FY 2018-19.

They added they would minimally raise the federal cabinet approved development budget of Rs800 billion to Rs830 billion.

The NEC meeting was presided over by the Prime Minister Shahid Khaqan Abbasi which saw participation for a small period by Chief Ministers of Khyber-Pakhtunkhwa (KP), Sindh and Balochistan.

The four provinces in a previously held budget linked meeting had stipulated Rs1.013 trillion for spending under their own Annual Development Plan.

Sindh CM Murad Ali Shah, KP CM Pervez Khattak and Balochistan CM Abdul Quddus Bizenjo formed a united front and stated the federal government didn’t have the authority to unveil next financial years budget considering its term was ending on May 31st.

They voiced their opposition to the federal government’s inclusion of new schemes in the federal PSDP for next FY 2018-19.

They alleged the federal government had started new projects in areas of KP and Sindh where their parliamentarians or its allied parties won the elections in 2013.

Adding to the boycott by the CM’s of Sindh, KP and Balochistan, they called an immediate press conference and questioned the NEC’s constitutional authority to give go-ahead for PDSP FY 2018-19 in non-attendance of a majority of its members.

Much to the dismay of the federal government, its Federal Minister for Industries Ghulam Murtaza Jatoi also was absent from the NEC meeting and the boycotting CM’s believed majority of its 13 members were not present there.

Adviser to PM on Finance Dr Miftah Ismail said it was the prerogative of the parliament to give go-ahead to federal PSDP and no province has the power to challenge it.

Planning Minister said when the deliberation about PSDP 2018-19 was initiated, the CM’s of the provinces lodged protestations over non-inclusion of their projects in PSDP.

Mr Iqbal added after the 18th amendment in the Constitution, provincial schemes didn’t come under the purview of the centre.

He shared the federal PSDP was majorly restricted to infrastructure projects, however, some provinces were trying to force inclusion of their schemes under federal PSDP.