The Capital Development Authority (CDA) will largely depend on opening of two new residential sectors — C-15 and C-16 — and auction of plots to meet its revenue collection target of Rs29.5 billion during the next financial year.
CDA Chairman Farkhand Iqbal and CDA Member Finance Javed Jehangir here on Thursday announced the civic body’s surplus budget for the fiscal year 2012-2013 in presence of board members with a total outlay of Rs28.32 billion (Rs28,320 million), which is 18% higher than the last financial year’s budget. “The main focus in the budget is on development activity for which main sources of revenue generation will be sectors C-15 and C-16 and auction of commercial and residential plots,” the CDA chairman said.
The development budget, which is 57% of the total outlay, is estimated to be Rs16.025 billion, which includes Rs1.69 billion projects under the Public Sector Development Programme (PSDP) and Rs14.3 billion self-funding uplift schemes. Interestingly, 31% of the development budget is allocated for unforeseen projects.
The non-development expenditures are expected to be Rs12.2 billion, which is 43% of the total outlay of the budget. It includes Rs5.1 billion for pays, allowances and pensions and Rs7.8 billion for utility charges, maintenance and grants.
Farkhand Iqbal pointed out that they have pinpointed eleven priority projects from self-financing and out of those completion of Margalla Avenue, Kashmir Highway and 11th Avenue would be landmark achievements. “We have tried to present a good budget amid difficult circumstances without adding any tax or increasing rates of ongoing taxes,” he said.
CDA Member Finance Javed Jehangir said that they expect to generate Rs21.4 billion from major resources, including Rs13 billion from launch of sectors C-15 and C-16 and remaining from auction of commercial and residential plots, pre-qualification and others, Rs2.29 billion (transfer fee of plots and other allied receipts), Rs1.104 billion (property tax), Rs265.6 million (water charges), Rs154 million (toll tax), Rs500 million (sanitation), interest on deposits (Rs225 million) and others.
Farkhand Iqbal told Journalists that the CDA had signed a Memorandum of Understanding (MoU) with a Chinese firm to resolve water shortage problem once and for all. As per plan, water would be brought from Ghazi-Brotha and it would also help in saving energy, as water would reach overhead tanks of consumers with the force of gravity without using pumps.
“With the implementation of this project, we will close down all 134 tubewells and consumers will stop using water-pumps. It will help in saving energy and underground water,” he said.
According to the budget document, the eleven priority projects include construction of 6,000 flats in Sector I-15 including infrastructure development of Sector I-15 (Rs500 million), Islamabad Metro Service (Rs400 million), construction of Margalla Avenue from G T Road to Sector D-12 (Rs300 million), construction of 11th Avenue from Kashmir Highway to Khayaban-e-Iqbal (Rs300 million), pedestrian underpasses (Rs300 million), overhead pedestrian bridges (Rs175 million), extension of I-9 railway track up to Faisal Avenue (Rs100 million), development of Markaz D-12 (Rs75 million), construction of second carriageway of H-8 Service Road (Rs50 million), development of Sector E-12 (Rs25 million) and dualisation of F-11 Service Road (Rs20 million).
To a question, Farkhand Iqbal again defended the controversial LED streetlights project, saying that the matter was subjudice but he would say that it was a very good project in view of energy crisis. According to him, 152 countries around the world are using the same technology.