Federal government allocates Rs1,001 billion development budget

ISLAMABAD: The Public Sector Development Programme (PSDP) for fiscal year 2017-18 has a total outlay of Rs2,113 billion, including federal and provincial allocations.

The size of the PSDP shows an increase of 26% compared to the budget estimates of 2016-17 and 37.3% to the revised estimates of the same period.

The documents reveal that of the total PSDP allocation, Rs1,001 billion has been earmarked for federal development projects — which is 25.1% more than the budget estimates of the outgoing fiscal year —and Rs1,112 for provinces' development.

Judging from the allocations made in the document, obtained exclusively by Geo News, it can be deduced fairly that the government's first priority is development of infrastructure and then energy production. A total of Rs404 billion have been earmarked for energy-related projects and Rs411 billion for the communication sector.

The share of federal ministries/divisions in the upcoming fiscal year is set as Rs377.9 billion, indicating an increase of 34% compared to last year.

The corporations' PSDP has been placed at Rs380.6 billion — an increase of 19.7% over last fiscal year’s budget estimates.

An amount of Rs1,401 billion will be utilised for debt servicing.

Moreover, Rs230 billion have been set aside as total subsidy, of which Rs130 billion will be utilised as electricity subsidy.

A total amount of Rs162 billion will be received in the form of foreign assistance for all the development projects.

Breaking down the allocations, the ongoing schemes of the National Highway Authority will receive Rs305 billion while Rs14.7 billion has been allocated for new development schemes.

Moreover, it was revealed that the PM’s Youth Programme will be given Rs20 billion, gas infrastructure development Rs25 billion, clean drinking water schemes Rs12.5 billion and infrastructure development Rs67 billion.

The Pakistan Railways will receive Rs33.54 billion for its ongoing schemes and Rs9.36 billion for new schemes.

Moreover, Rs16 billion will be allocated to the National Disaster Management Authority.

According to the PSDP, Rs1 billion have been allocated for the New Gwadar International Airport, of which Rs900 million will come from foreign assistance. The project was approved by the Executive Committee of the National Economic Council (ECNEC) on Jan 12, 2015 at a total cost of Rs22.247 billion. Up till June 30 this year, the funds utilised for the project are stated to be Rs1.023 billion.

An amount of Rs30 billion has been allocated in the budget for the Prime Minister's Global Sustainable Development Goals Achievement Programme, which is 50% higher than last year's budget estimates.

Another Rs40 billion have been provided for the Special Federal Development Programme, showing an increase of 42.9%.

An amount of Rs12.5 billion has been budgeted for the Clean Drinking Water for All scheme under the PSDP.

The Earthquake Rehabilitation and Reconstruction Authority (ERRA) has been allocated Rs7.5 billion while Rs5 billion have been reserved as a special provision for completion of CPEC projects.

Moreover, an amount of Rs45 billion has been allocated for the relief and rehabilitation of IDPs.