As earlier indicated federal government has proposed National Development Outlay of Rs2,263 billion (Rs2.263 trillion) for fiscal year 2022-23 which included Rs800 billion for Federal Public Sector Development Program (PSDP), as the multiparty government presents annual budget in the national assembly on Friday.
As per the budget documents, in the budget of fiscal year 2022-23 at least Rs564 billion has been allocated for federal ministries and departments. The government has allocated Rs118 billion for different projects in the National Highway Authority, Rs2.48 billion for aviation and Rs70.05 billion for Cantonment Division.
The documents show that the government has also allocated Rs9.60 billion for different projects of the ministry of climate change and Rs7.23 billion for projects in the education department. Besides, Rs800 million has been allocated for the Board of Investment.
The government under PSDP 2022-23 has also allocated Rs135.85 billion to provinces and special areas. For Azad Jammu and Kashmir and Gilgit-Baltistan at least Rs52.640 billion has been allocated for different projects in the next financial year.
For Higher Education Commission and Housing ministry Rs44.170 billion and Rs13.950 billion have been allocated respectively. The Ministry of Interior, Ministry of National Food Security & Research Division, Ministry of Health and Atomic Energy Commission have been allocated Rs9.90 billion, Rs10.12 billion, Rs12.650 billion and Rs25 billion respectively.
As per the PSDP documents, the ministry of Planning Development and Special Initiatives are given Rs42 billion to its projects in next fiscal year while the Railway Division has been given Rs32.640 billion in next fiscal year. The Ministry of Water Resources and Power Division have been allocated Rs99 billion and Rs43.130 billion respectively.
As per the documents, Rs2.23 billion has been allocated for defence projects under the Public Sector Development Program (2022-23) against the allocated funds of around Rs1.8 billion. “As many as 407 million has been allocated for the new defence-related projects,” said the document issued by the planning ministry.
The focus of the development sector programme is “the revival” of the China-Pakistan Economic Corridor and related projects for inter-provincial and regional connectivity with equal importance to special economic zones to promote trade and create job opportunities.
“For conservation and augmentation of water resources, the allocation has been prioritized for large dams like Diamer Bhasha, Mohmand, Nai Gaj and fifth extension of Tarbela,” it said.
The government has planned to undertake some new initiatives under the PSDP 2022-23 to boost productivity. “A special development initiative for ‘20 Poorest Districts in Pakistan’ is being launched to meet the SDGs targets,” it said.
As per the documents, the National Economic Council (NEC) had approved federal PSDP of Rs. 900 billion including foreign aid of Rs100 billion in its meeting held on 7th June, 2021. Prudent measures were taken to fast track the quarterly releases during first and second quarters of FY 2021-22.
However, owing to fiscal imbalance and to contain the increasing current account deficit and primary deficit, besides continuing with the public relief package, federal PSDP 2021-22 was reduced from Rs900 billion to Rs550 billion during the last two quarters. This reduction warranted to adopt a wise approach to realign priorities and funds re-allocation towards optimum utilization and completion of fast-moving projects. The projects due for completion by 30th June, 2022 reduced from 371 to 170 costing Rs285 billion. Hopefully, these projects would generate benefits for the general public.
The NEC in its meeting held on 8th June, 2022 approved National Development Outlay for 2022-23 at Rs2,263 billion, including Federal PSDP at Rs800 billion and Provincial ADPs at Rs1,463 billion. The federal programme of Rs800 billion includes Rs73 billion as VGF/PPP. PSDP reflects the resolve of the Government to achieve the targeted economic growth, maintain the tempo of development, improve livelihoods and remove regional disparities. Projects on BOT/VGF funding have been given adequate fiscal space to pick up implementation during the year. P3A has been tasked to provide one window facility and fast track PPP/BOT related projects.
