close
Tuesday March 19, 2024

Government reduces bloc allocation of Finance Division

By Mehtab Haider
September 21, 2018

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.

He said that the revised PSDP document with allocated amount of Rs675 billion plus Rs50 billion through securitisation of projects that would be placed on website of Planning Commission after Ashura Muharram.

The official reminded that the PSDP utilisation stood at Rs661 billion in the last budget because the capacity constraints did not allow utilisation of whole allocated amount so the Finance Ministry was also among other ministries that remained unable to utilise full allocated money. Keeping in view these constraints the government decided to rationalise the PSDP through which the amount was cut down from Rs800 billion to Rs675 billion by abolishing 350 development schemes including 341 un-approved projects and 9 schemes which got approved but zero utilisation was made so far.

The government decided to slash Rs45 billion through unapproved scheme, Rs28 billion from Finance Division, Rs10 billion of Planning Commission, Rs15 to 25 billion of NHA, Rs5 billion of SDGs and Rs5 billion for feasibility studies.

“We have protected allocation of water, power and social sector for ongoing development schemes,” said the official and added that the allocation of Bhasha Dam would remain Rs23 billion for its construction in the revised PSDP for 2018-19.