Ministries differ on PSDP size for next fiscal

ISLAMABAD: Two economic ministries -- Ministry of Finance and Ministry of Planning -- are presenting divergent views on the approved size of federal Public Sector Development Programme (PSDP) for next budget 2018-19.

There was a chance to explain the real situation but the joint press conference of Minister for Planning Ahsan Iqbal and Adviser to PM on Finance Miftah Ismail was cancelled on Wednesday apparently because the prime minister had convened a meeting of the federal cabinet.

Contrary to the claim of Planning Ministry that the NEC approved the size of PSDP at federal level to the tune of Rs1,030 billion for the next budget, the Ministry of Finance stated that the indicated budget ceiling (IBC) for development stood at Rs800 billion only, so the remaining amount of Rs230 billion will be arranged on self-financing basis. It means that the Finance Ministry will provide budgetary resources of just Rs800 billion for the next budget instead of Rs1,030 billion as claimed by the Ministry of Planning after the NEC meeting held on Tuesday under chairmanship of Prime Minister Shahid Khaqan Abbasi from which three smaller provinces had boycotted and walked out first time in recent history of the country.

According to Ministry of Planning, the size of PSDP stands at Rs1,030 billion including Rs825 billion allocations for ministries/divisions, Rs105 billion bloc allocation for TDPs and other special initiatives and remaining Rs100 billion as bloc allocation meant for incoming government after winning next elections but Ministry of Finance on Wednesday confirmed that the indicated budget ceiling for development stood at Rs800 billion for the next fiscal year.

“We have indicated IBC for development to the tune of Rs800 billion only,” Miftah Ismail confirmed to The News when asked him on this subject and added that the remaining amount would be arranged on self-finance basis.

To another query regarding devaluation of rupee against dollar criticised by former finance minister Ishaq Dar, Miftah Ismail said that he thought that devaluation of rupee against dollar was right decision as this decision responded instantly and exports went up by 24.4 percent in March 2018.