NEC to approve national development outlay of Rs2043b

ISLAMABAD: The National Economic Council (NEC) is all set to approve national development outlay of Rs2043 billion under Chairmanship of PM on Tuesday (today) including federal PSDP at Rs930 billion, provincial development outlays at Rs1013 billion and execution of Rs100 billion projects in shape of public private partnership (PPP) in the next budget 2018-19.

The NEC will accord approval to national development outlay and macroeconomic framework with envisaged GDP growth rate target at 6.23 percent, inflation 6 percent and bringing down the current account deficit to 3.8 percent of GDP for next budget 2018-19.

With inclusion of Rs100 billion into development to finance projects in PPP mode, the government has increased overall size of Public Sector Development Programme (PSDP) at federal level to Rs1030 billion for the next budget 2018-19.

Total number of development schemes during fiscal year 2018-19 would be 1235 into the fold of Public Sector Development Programme including 726 ongoing schemes and 509 new schemes.

The NEC will accord approval of PSDP at Rs1030 billion including Rs825 billion allocation for ministries/divisions, Rs105 billion for TDPs, special programs and Rs 100 billion for financing on PPP mode but this amount will remain outside the budget.

The working paper for NEC states that a major portion of the federal Public Sector Development Programme to the tune of 63 percent was earmarked for ongoing projects for the upcoming budget 2018-19.

The ministries/divisions and executing agencies would be required to process PC-1 of unapproved projects for approval of the competent forum by August 31, 2018 for efficient utilisation of allocated funds.

It was first time in the country’s history that the government made Rs100 billion as off budget item in PPP mode as part of overall national development programme and many termed it as a bid to balloon the development outlay to inflate development and please voters in upcoming elections.