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April 17, 2018

APCC okays Rs1,763b for NDP in next budget


April 17, 2018

ISLAMABAD: With the request to jack up size of development outlay to Rs2,300 billion, the Annual Plan Coordination Committee (APCC) on Monday approved Rs1,763 billion for National Development Programme (NDP) in next budget 2018-19 against Rs2,113 billion for outgoing

fiscal 2017-18.

Now the highest economic decision-making forum -- National Economic Council (NEC)--under chairmanship of Prime Minister Shahid Khaqan Abbasi is scheduled to meet on coming Monday (April 23) at the PM Office for finalising national development outlay and macroeconomic framework for the next budget 2018-19.

The PM, who also holds portfolio of the Planning Commission (PC) chairman, is expected to visit PC on coming Friday for giving directives to the planning managers on finalisation of the developmental and economic strategy of the country.

So far the total development outlay was slashed down by Rs350 billion bringing it down from Rs2,113 billion in outgoing fiscal to Rs1,763 billion for 2018-19. It is up to the Prime Minister who will give final approval to the size of development programme either to keep it at existing level of Rs1,763 billion or jack it up to beyond Rs2,000 billion. Keeping in view the financial constraints, it seems ambitious that the development programme touches Rs2 trillion mark even.

“We are expecting that the national development outlay will be touching Rs02 trillion for federal and provincial annual development plans,” Federal Minister for Planning Ahsan Iqbal told reporters outside the P Block (Planning Commission) auditorium on Monday where the APCC was holding its daylong meeting to finalise development programme and macroeconomic framework for next budget.

He said the GDP growth target was envisaged at 6.2 per cent for upcoming fiscal year and then this growth trajectory would be jacked up in years ahead. Criticising PTI Chairman Imran Khan, he said that he was new comer into politics who did not have required experience to run government even at lowest tier of local governments. The plane can crash if it’s given in inexperience hands at take off stage, he added.

The APCC has approved total development outlay of Rs1,763 billion,

including Rs750 billion for federal Public Sector Development Programme (PSDP) The government has allocated Rs750 billion as federal PSDP, including Rs105 billion as bloc allocation for development. The provinces earmarked Rs1013 billion for annual development programmes (ADPs) for the next budget 2018-19.

The provinces share on development expenditures has gone up in comparison with the Centre with margin of Rs263 billion. The APCC recommended the NEC for approval of the national development outlay at Rs1,763 billion for 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 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.

New projects in order of priority and proposed allocation should be at least 25 percent of the approved cost of the project as per PAC/NEC directions. In any case, allocations to the new projects should not be more than 10 per cent of the IBC allocated/awarded to each ministry/division.

The national development outlay was slashed down by Rs350 billion as it was proposed at Rs1,763 billion for 2018-19 against Rs2,113 billion for last budget 2017-18 because the Centre was facing acute financial crunch.

The government proposed abolishing of controversial discretionary funding programme on the name of special initiatives of PM’s programmes to the tune of Rs100 billion out of which they used to dole out Rs250 to Rs300 million to each treasury member of Parliament and more than 90 per cent schemes were executed in Punjab.

The federal public sector development programme (PSDP) for 2018-19 proposed at Rs750 billion, including Rs607 billion as domestic rupee component and Rs145 billion as foreign aid. The provincial annual development outlays (ADPs) proposed at Rs1,013 billion

Of total Rs750 billon allocation for federal PSDP, the government has proposed Rs305 billion for ministries/divisions, including Rs274 billion as rupee component and Rs31 billion as foreign aid, for Corporations such as NHA, Wapda and Power Rs266 billion, special areas Rs62 billion, special provision for completion of China Pakistan Economic Corridor (CPEC) Rs05 billion and Earthquake Reconstruction and Rehabilitation Authority Erra Rs07 billion.

Finance Division proposed bloc allocation of Rs105 billion for three initiatives, including special development programme for TDP & security arrangement, PM’s Initiatives and Gas Infrastructure Development Cess (GIDC). Total federal share of development programme stands at Rs750 billion.

For provinces, the total ADPs touched Rs1013 billion, including Rs865 billion as rupee component and Rs148 billion in shape of foreign aid. For corporations, the proposed allocated amount of National Highway Authority (NHA) has been slashed down from Rs319.720 billion in outgoing fiscal 2017-18 to Rs233.300 billion, indicating that the budgetary allocation for NHA was cut down by Rs86.42 billion for the coming budget. For NTDC/Pepco, the proposed allocation stands at Rs33.125 billion for upcoming budget 2018-19 against Rs60.909 billion in outgoing fiscal year, indicating that the allocation for power sector was reduced by almost 50 per cent.

Only the government has allocated Rs05 billion for special provision for completion of CPEC projects in coming fiscal year. The government has allocated Rs7.5 billion for Erra. The government has made bloc allocation of Rs105 billion for relief and rehabilitation of TDPs, Security Enhancement, PM’s Youth Initiatives and Gas Infrastructure Development

Cess (GIDC) for upcoming budget against Rs135 billion in outgoing fiscal 2017-18.

In the proposed PSDP for 2018-19, the government has allocated Rs 2.877 billion for Aviation Division, Rs 125 million for Board of Investment, Rs 1.066 billion for Cabinet Division, Capital Administration & Development Division (CADD) Rs 5.651 billion, Climate Change Division Rs 786.699 million, Commerce Division Rs 1.2 billion, Communication Division (other than NHA) Rs 13.997 billion, Defense Division Rs 608.197 million, Defense Production Division Rs 2.780 billion, Economic Affairs Division Rs 70.200 million, Establishment Division Rs 175.437 million, Federal Education & Professional Training Division Rs 3.286 billion, Finance Division Rs 14.015 billion, Foreign Affairs Division Rs 200 million, Higher Education Commission (HEC) Rs 37 billion, Housing & Works Division Rs 5.356 billion, Human Rights Division Rs 128.860 million, Industries & Production Division Rs 1.575 billion, Information & Broadcasting Division Rs 865 million, Information Technology & Telecom Division Rs 2.656 billion, Inter Provincial Coordination Division Rs 2.252 billion, Interior Division Rs 19.581 billion, Kashmir Affairs & Gilgit Baltistan Division Rs 44.655 billion, Law and Justice Division Rs 1 billion, Maritime Affairs Division Rs 10.198 billion, Narcotics Division Rs 251.207 million, National Food Security & Research Division Rs 1.691 billion, National Health Services, Regulations & Coordination Division Rs 25.010 billion, National History & Literary Heritage Division Rs 300.597 million, National Security Division Rs 100 million, Pakistan Atomic Energy Commission (PAEC) Rs 10 billion, Pakistan Nuclear Regulatory Authority (PNRA) Rs 300 million, Petroleum Division Rs 560.213 million, Planning Division Rs 17.647 billion, Postal Service Division Rs 370 million, Railways Division Rs 31.411 billion, zero allocation for Religious Affairs & Inter Faith Harmony Division, Revenue Division Rs 1.746 billion, Science & Technology Division Rs 2.3 billion, States & Frontier Regions Rs 27.755 billion, Statistics Division Rs 200 million, SUPARCO Rs 3.5 billion, Textile Industry Division Rs 222 million, Water Resource Division Rs 59.009 billion and Priority Projects under consideration Rs 11.588 billion.

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