Provinces outpace Centre: Allocate Rs263b for schemes

ISLAMABAD: Out of total proposed national development outlay of Rs1,763 billion to be presented to Annual Plan Coordination Committee (APCC) meeting scheduled to be held on coming Monday, the provinces have outpaced the Centre by allocating increased resources of Rs263 billion for development schemes in an electioneering year.

The federal government has allocated Rs750 billion, including Rs105 billion as bloc allocation for development and provinces earmarked Rs1,013 billion for annual development programmes (ADPs) for the next budget 2018-19. The provinces share on development expenditures outpaced the Centre with massive margin of Rs263 billion, and it’s happening first time in the country’s history mainly thanks to increased share of provinces in the NFC Award and 18th constitutional amendments.

According to APCC working paper available with The News disclosed on Friday that the forum (APCC) would be requested to recommend the National Economic Council (NEC) for consideration and approval of the National Development Outlay at Rs1,763 billion for the Federal Public Sector Development Programme (PSDP) and provincial Annual Development Programme (ADPs) and enhance the size of federal PSDP from Rs750 billion to Rs1,300 billion and macroeconomic framework for 2018-19.

The Finance Division, under Medium Term Budgetary Framework (MTBF), conveyed indicative budget ceiling (IBC) for development budget for 2018-19 at Rs645 billion for ministries/divisions/executing agencies. The working paper for APCC states that since the indicated amount was not sufficient to meet the requirements of funds especially of China Pakistan Economic Corridor (CPEC) projects, some of them awarded on engineering procurements contract (EPC) mode and at advance stage of completion.

The Ministry of Planning, Development & Reforms has received total demand of Rs1,900 billion from line ministries/divisions for ongoing and new projects for PSDP 2018-19. Through consultative meetings, the total demand was rationalised at Rs1,500 billion. The Ministry of Planning approached the Finance Division to enhance the size of development budget to at least Rs1,300 billion so that all the sectors of economy may flourish equally and follow the trajectory of balanced growth.

The Ministry of Planning requested the ministries/divisions to prepare respective development portfolio adhering to guidelines as ongoing projects with 70 per cent expenditures should be fully financed, foreign aided projects should be provided required rupee cover, CPEC projects on EPC should be allocated required funds and security related projects should be allocated demanded funds.