Govt reduces bloc allocation of Finance Division

ISLAMABAD: The PTI government has slashed bloc allocation of Finance Division by Rs28 billion bringing it down from Rs105 billion to Rs77 billion in the mini-budget. After the development, the allocated amount for TDPs and security enhancement in tribal areas reduced while Prime Minister’s Youth Initiative with allocation of Rs10 billion would be abolished, The News has learnt. In the budget 2018-19 announced by Pakistan Muslim League-N, the government had allocated bloc allocation of Rs105 billion for Finance Division by earmarking Rs45 billion for Temporarily Displaced Persons (TDPs), another Rs45 billion for Security Enhancement into Waziristan of tribal areas, Rs10 billion for PM’s Youth Initiative and Rs5 billion for Gas Infrastructure Development Cess. Now the bloc allocation was slashed by Rs28 billion for Finance Division in the revised budget so it was decided that allocated amount of all four projects would be rationalised. On the name of rationalisation of Public Sector Development (PSDP) through mini budget which was laid down before the Parliament by Federal Minister for Finance Asad Umar, the government deleted 341 un-approved scheme from the PSDP list with total estimated cost of around Rs2 trillion but the government cut down allocation of Rs45 billion for the current fiscal year which was earmarked for these unapproved schemes. Interestingly, there is clear cut and substantial difference in mentioned allocated amount of PSDP in the revised budget document for 2018-19 released by Ministry of Finance in which the PSDP allocated amount was shown at Rs575 billion but the minister indicated that the PSDP amount was jacked up to Rs725 billion for the current fiscal year against utilisation of Rs661 billion in last fiscal year. One top official of Planning Ministry confirmed to The News on Wednesday that the PSDP amount would be standing at Rs675 billion as Ministry of Finance would provide Rs575 billion through budgetary resources while Minister for Finance Asad Umar assured the Planning Commission of providing another Rs100 billion through “Innovative” means such as through public private partnership (PPP), Built-Operate and Transfer (BOT) or other basis that would result into jacking up the amount up to Rs675 billion. “The government also intends to provide Rs50 billion for Karachi Package as some investors’ bankers held deliberations with finance and planning managers before announcement of mini-budget and they showed their willingness to arrange financing of some key development projects in near future,” said the official.