ISLAMABAD: The federal government has unveiled a Rs1.6 trillion Public Sector Development Programme (PSDP) for the fiscal year 2018-19 of which Rs 850bn has been allocated to the provinces, while Rs800bn has been allocated to the federal government.
According to the Budget Speech 18-19 document, “Additional resources of Rs230bn [in the PSDP] will be financed through autonomous organisations, public-private partnerships, and other means. Investments in the water, road infrastructure, electricity sectors and the China-Pakistan Economic Corridor (CPEC) will be protected.”
Under the PSDP, Rs47bn has been allocated to the Higher Education Commission, Rs37bn for basic health and Rs10bn for the PM’s Youth Programme.
Development expenditure outside the Public Sector Development Programme (PSDP) has been estimated at Rs180.2bn for FY18-19, which is 18.4pc higher than FY17-18 estimates.
The PSDP includes Rs100 billion in block allocations for the next government.
About 17.4% of the PSDP will be funded by taking Rs180.3 billion worth of foreign loans in the next fiscal year.
The infrastructure sector has been allotted Rs575 billion or 62% of the proposed budget, social sector has been allotted Rs135 billion or 14%, science and technology has been allotted Rs12 billion or 1%. Special areas have been given Rs72 billion or 8% of the proposed PSDP.
Out of Rs1.03 trillion, the share of Planning Ministry-administrated PSDP will be Rs825 billion, down from outgoing fiscal year’s level of Rs866 billion.
Total allocations for federal ministries are estimated at Rs450.3 billion as against Rs377.8 billion in the outgoing fiscal year. The federal ministries allocations are about 43.6% of the total proposed PSDP. The corporations have been given Rs346.2 billion, Rs34.4 billion or 9% less than the outgoing fiscal year.
The infrastructure sector has been given Rs575 billion or 62% as against 67% of the total development allocated for the outgoing fiscal year. The National Highway Authority will get Rs310 billion as against Rs319 billion in the outgoing fiscal year. Pakistan Railways will get Rs39.4 billion in the next fiscal year as against Rs43 billion in the outgoing fiscal year.
The energy sector, mainly the National Transmission and Dispatch Company and Pakistan Electric Power Company, has been given Rs36.2 billion, down from outgoing fiscal year’s level of Rs61 billion.
An amount of Rs105 billion has been proposed for Finance Ministry administered PSDP. This includes Rs90 billion for security enhancement and relief for Temporarily Displaced Persons affected by Operation Zarb-e-Azb. However, the nature of this spending falls under the current expenditures but the government has clubbed it with development, which has diverted significant portion of the budget for non-development activities
The Ministry of National Health Services, Regulations and Coordination has seen major cut in its allocation. As against Rs48.7 billion, the government has proposed only Rs25 billion for next fiscal year. The Kashmir Affairs & Gilgit Baltistan Division will get Rs51.2 billion in the next fiscal year as against Rs43.6 billion in the outgoing fiscal year.
Higher Education Commission’s development budget has been enhanced to Rs46.7 billion as against Rs35.7 billion in the outgoing fiscal year. Housing and Works Ministry will get Rs5.4 billion as against Rs10.4 billion in the outgoing fiscal year.
The Planning Ministry will get Rs27.5 billion as against 16.8 billion budget in the outgoing fiscal year. The Water Resources Division will get Rs79.5 billion in the new fiscal year as against its Rs36.5 billion in the outgoing fiscal year.
The government has abolished the PM’s Energy for All and Clean Drinking Water initiatives.
For PM’s Global SDG’s Goals, an amount of Rs5 billion has been proposed as against Rs30 billion in the outgoing fiscal year. This money is being spent on the recommendations of parliamentarians.
The Special Federal Development Programme has also been abolished. In the outgoing fiscal year, Rs40 billion had been allocated under this head which were spent on the PM’s Directives.
The Interior Division has been given Rs24.2 billion as against Rs15.7 billion. The Pakistan Atomic Energy Commission has been given Rs30.4 billion as against Rs15 billion in the outgoing fiscal year. The Ministry of States & Frontier Regions would get Rs28.2 billion as against Rs26.9 billion in the outgoing fiscal year.
An amount of Rs10 billion has been given for the first time for the FATA Development Plan.
For construction of the Sukkur-Multan section of CPEC’s eastern route, Rs30.8 billion has been proposed against the remaining requirement of Rs121.9 billion. The total cost of the project is Rs298 billion.
For the construction of Hakla-Yarik-Dera Ismail Khan motorway of CPEC’s western route, the Planning Commission has proposed Rs25 billion for the next fiscal year as against Rs38 billion for outgoing fiscal year. The total cost of this scheme is Rs110.2 billion.
For land acquisition of the Sukkur-Hyderabad section of CPEC Rs10 billion have been proposed for the next fiscal year as against the requirement of Rs22 billion. For land acquisition of Islamabad Raikot section for CPEC Rs1.5 billion have been proposed.
For the construction of the Eastbay road project of Gwadar Rs6 billion have been proposed for the next fiscal year. For Pak-China technical and vocational centre Rs625 million have been proposed.