Development outlay of Rs1,675 bn proposed in budget

ISLAMABAD: The government has proposed a national development outlay of Rs1,675 billion for the upcoming budget, including Rs800 billion as the federal Public Sector Development Programme (PSDP) and Rs875 billion for provincial development outlays in the financial year 2016-17, an official working paper available with The News reveals.

According to the official working paper for the Annual Plan Coordination Committee (APCC) scheduled to be held tomorrow (Friday), a copy of which is exclusively available with The News, the government proposed allocation of Rs25 billion for the Gas Infrastructure Development Fund (GIDF), Rs20 billion for the Prime Minister’s Youth Programme and Rs100 billion for a special development programme for TDPs and security  enhancement in coming financial year 2016-17.

The government directed ministries/divisions to give due priority to $46 billion China-Pakistan Economic Corridor (CPEC) in next financial year. The summary for APCC states that under medium term budgetary framework, Finance Division has given indicative ceiling for development budget for 2016-17 at Rs655 billion for ministries/executing agencies and Rs145 billion for other programmes including TDPs and special programmes.

Of total federal PSDP to the tune of Rs800 billion, the rupee component will be standing at Rs649 billion and foreign aid Rs151 billion. For provincial Annual Development Plans (ADPs) for all federating units, total amount proposed at Rs875 billion including Rs781 billion as rupee component and Rs94 billion as foreign aid in 2016-17.

The summary of PSDP for 2016-17 showed that the proposed allocation of ministries/divisions stood at Rs239 billion including Rs213 billion as rupee component and Rs25 billion as foreign aid, proposed allocation of Rs320 billion for corporations like National Highway Authority (NHA) and Wapda-Power including Rs198 billion as rupee component and Rs122 billion as foreign aid, proposed allocation of Rs42 billion for Special Areas development including Rs41 billion as rupee component and Rs1 billion as foreign aid, proposed allocation for MDGs community development programme of Rs20 billion as rupee component, proposed allocation of Federal Development Programmes Rs28 billion, proposed allocation for ERRA (Earthquake Reconstruction and Rehabilitation Authority) to the tune of Rs7 billion including Rs4 billion as rupee component and Rs3 billion as foreign aid.

Total rupee component of PSDP will be standing at Rs504 billion while the foreign aid will be hovering around Rs151 billion in 2016-17, totaling the amount Rs655 billion. Compared to the size of Rs655 billion for ministries/executing agencies for 2016-17, total demand received from all ministries/divisions/public sector corporations was standing at Rs1800 billion.

However, the Planning Ministry asked the respective ministries/divisions to prepare their development portfolio 2016-17 adhering to guidelines (1) ensure that the proposed projects fall under the sectoral priorities and contribute to achieving high level goals set under Vision 2025 & 11th Five Year Plan (ii) identify projects that may be undertaken on innovative modes of financing (public private partnership (PPP), community participation, cost sharing by NGOs.

(iii) Include projects having identifiable intended tangible outcome relevant to achieving any of the Sustainable Development Goals (SDGs) envisaged under UN umbrella by 2030 to which Pakistan is signatory.

(IV) Adequately provide funds for foreign aid projects

(V) Allocate appropriate funds to ongoing projects which are at fairly advanced stage of completion. The projects initiated under CPEC and supporting it may be given the due priority.

(VI) Adhere to the provisions of 18th Amendment in terms of divisions of subject between the federal and provincial governments.

The summary states that the projects initiated before 2010 having throw-forward of up to Rs1500 million rupees have not been provided budget in the PSDP for 2016-17. However, such projects will be provided resources during the year for completion or for clearing financial liabilities if any.

Federal PSDP for 2015-16: In outgoing financial year 2015-16, total release of funds so far stood at Rs481.9 billion against originally allocated size of Rs700 billion. Of allocated amount in shape of rupee component of Rs553.7 billion, the released amount stood at Rs400.3 billion, indicating 72 percent released amount. Of foreign aid of Rs146.3 billion, the released amount stands at Rs81.6 billion up to March 2016 which is 56 percent of total committed amount by donors.

During the year, the Planning Commission authorised re-appropriation of Rs29.123 billion from 177 slow moving projects to 122 fast track moving projects. It is expected that 236 projects having total estimated cost of Rs254 billion would be completed by June 30, 2016, the summary concluded.