ISLAMABAD: With intervention of Prime Minister’s Adviser on Establishment Division Arbab Shahzad, the government has decided to allocate bloc allocation of Rs22 billion for tribal districts development in the next budget under direct jurisdiction of Finance Division.
The government is also set to approve development projects under special agriculture package in a bid to improve efficiency and productivity of farm sector as these projects were largely envisioned and conceived on the recommendations of Jehangir Khan Tareen.
The government has decided that the proposed bloc allocation under direct jurisdiction of Finance Division proposed at Rs100 billion including allocation relief and rehabilitation of Internally Displaced Persons (IDPs) Rs32 billion, Security enhancement for tribal districts Rs32 billion, tribal districts development Rs22 billion, Prime Minister Youth programme Rs10 billion and remaining Rs4 billion for GIDC (Gas Infrastructure Development Cess).
In order to bring districts on a par with other developed areas of the country, the federal government is committed to provide Rs85 billion over three years period. When the Finance Ministry gave resource envelop of just Rs675 billion for development budget the Planning Ministry was not fully willing to allocate the share of Rs22 billion from its development envelop. The PM’s Adviser Arbab Shahzad especially visited Planning Commission and told the planning managers that it was commitment of the PM and it could not be dropped at all.
The Annual Plan Coordination Committee (APCC) is all set to approve annual development outlay of Rs1,837 billion for upcoming budget 2019-20 in its meeting scheduled to be held today (Thursday). The size of federal Public Sector Development Programme (PSDP) has been proposed at Rs675 billion and another Rs250 billion proposed in shape of public private partnership (PPP) mode so the total size would be standing at Rs925 billion. The provincial development outlay is proposed at Rs912 billion. The total national development outlay will be standing at Rs1,837 billion for next budget 2019-20.
It has also been decided in principle that the Finance Division would not require to get sanctioned approval from the Planning Ministry for releasing allocated funds. After seeking
approval from competent authority, the Finance Division would release funds directly to projects under bloc allocation.
Under Regional Equalisation Programme, the government has proposed allocation of Rs50 billion and its projects would be made part of different ministries/divisions in the upcoming PSDP for 2019-20. The four provinces have proposed development outlay of Rs912.340 billion for upcoming budget 2019-20 against revised estimates of Rs584.942 billion in outgoing fiscal year 2018-19. The four provinces have proposed 56 percent increase in their development outlay for the upcoming budget.
The Khyber Pakhtunkhwa government has slashed its allocation for development for the upcoming budget as they proposed an allocation of Rs142 billion in next fiscal 2019-20 against revised estimates of Rs181 billion for the outgoing fiscal year 2018-19.
Punjab’s allocation for Annual Development Plan (ADP) proposed to jack up to Rs400 billion for the coming financial year 2019-20 against revised estimates of Rs165 billion, indicating 142.4 percent increase in its allocation for the coming budget. Out of total ADP of Rs400 billion, Punjab will allocate Rs373 billion in shape of local rupee component from its own resources while Rs27 billion will be obtained as foreign project assistance in 2019-20.
Sindh’s ADP proposed to increase to Rs290.3 billion in the coming budget against revised estimates of Rs190 billion in outgoing fiscal year. Out of proposed ADP of Rs290.3 billion, Sindh proposed local component of Rs245.3 billion and Rs45 billion in shape of foreign project assistance.
In a strange move, the Khyber Pakhtunkhwa government reduced its proposed allocation from Rs181 billion in outgoing fiscal to Rs142 billion for the next budget. Out of total Rs142 billion in shape of ADP, KP government will generate Rs85 billion in shape of local rupee component and remaining Rs57 billion as foreign project assistance in coming financial year.
The Balochistan government has almost doubled its proposed allocation for annual development plan for the coming budget as it increased its allocation from Rs46 billion in outgoing fiscal to Rs80 billion for execution of development projects in next financial year 2019-20. Out of total allocation of Rs80 billion, Balochistan government will generate Rs72 billion in shape of local rupee component and remaining Rs80 billion as foreign aid in the coming financial year.