Govt allocates Rs1.32tr for PSDP 2020-21

–Rs650bn have been set aside for federal ministries and divisions; provinces to get Rs674bn  

–Rs70bn allocated to Covid-19 responsive; Rs52.4bn development outlay for AJK & GB Division

ISLAMABAD: The government has allocated Rs1.324 trillion to the Public Sector Development Programme (PSDP) for the upcoming fiscal year (FY21).

According to budget documents, of the total outlay, Rs650 billion (including foreign component of Rs72.5 billion) have been set aside for federal ministries and divisions, whereas Rs674 billion (including foreign component of Rs222.5 billion) have been earmarked for provinces.

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The National Economic Council (NEC) had approved the PSDP allocations earlier this month.

As per the budget document, the PSDP 2020-21 aims at the “integration of provincial development programmes with the overall growth agenda” so that the broader development goals, envisaged in Sustainable Development Goals (SDGs), could be achieved.

Meanwhile, the Ministry of Planning and Development stated that the government was fully cognizant of the situation arising out of the Covid-19 outbreak. “Thus, the emphasis is on social sectors [agriculture and production] as the sectors could prove helpful in employment generation and economic revival.”

It said the government would encourage the private sector to explore alternative sources of financing for development projects by providing it with a business friendly tax regime. “The government aims to simplify the project approval processes and to facilitate the influx of private sector investment into public sector infrastructure.”

According to the budget document, the government would distribute the Rs650 billion federal PSDP among various ministries and divisions, including Rs1.32 billion for Aviation Division, Rs80 million for Board of Investment, Rs4.78 billion for Cabinet Division, Rs500 million for Climate Change Division, Rs103.5 million for Commerce Division, Rs254.753 million for Communication Division (other than NHA), Rs660 million for Defence Division, Rs1.57 billion for Defence Production Division, Rs282.914 million for Establishment Division, Rs4.52 billion for Federal Education and Professional Training Division and Rs66.6 billion for Finance Division.

Similarly, Rs10.343 million have been earmarked for Foreign Affairs Division, besides Rs29.47 billion for Higher Education Commission, Rs8.73 billion for Housing and Works Division, Rs256 million for Human Rights Division, Rs800 million for Industries and Production Division, Rs360.918 million for Information and Broadcasting Division, Rs6.67 billion for Information Technology and Telecom Division, Rs929.492 million for Inter-Provincial Coordination Division, Rs14.75 billion for Interior Division, Rs52.42 billion for Kashmir Affairs and Gilgit-Baltistan Division, Rs991.424 million for Law and Justice Division, Rs2.68 billion for Maritime Affairs Division, Rs53.897 million for Narcotics Control Division, Rs12 billion for National Food Security & Research Division and Rs14.5 billion for National Health Services, Regulation and Coordination Division.

Among other allocations, Rs194.740 million have been set aside for National History and Literary Heritage Division, Rs23.29 billion for Pakistan Atomic Energy Commission, Rs350 million for Pakistan Nuclear Regulatory Authority, Rs1.78 billion for Petroleum Division, Rs3.54 billion for Planning, Development and Reform Division, Rs135 million for Poverty Alleviation and Social Safety Division, Rs24 billion for Railways Division, Rs53.950 million for Religious Affairs and Interfaith Harmony Division, Rs1.69 billion for Revenue Division, Rs4.45 billion for Science and Technological Research Division, Rs4.97 billion for SUPARCO, Rs81.25 billion for Water Resources Division, Rs118.67 billion for National Highway Authority, Rs346.94 billion for NTDC/PEPCO, Rs3 billion for Earthquake Reconstruction and Rehabilitation Authority and Rs70 billion for Covid-19 responsive and other natural calamities.

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Ghulam Abbas
The writer is a member of the staff at the Islamabad Bureau. He can be reached at [email protected]
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