Budget 2019-2020: PSDP stands at Rs675 billion

ISLAMABAD: The budget making process for 2019-20 kick-started on Tuesday, with the finance ministry indicating the size of development budget at Rs675 billion similar to the size of development programme for the ongoing financial year.

The government plans to present the next budget in parliament on May 24. The Priorities Committee on Tuesday held its maiden session to get input of ministries/divisions on development budget.

The finance ministry will consult ministries on the current budget front separately. With this unchanged size of Rs675 billion for the Public Sector Development Program (PSDP), the possibility of implementing the next five-year plan had virtually died down before its formal launch because the Planning Commission had estimated that it required a massive jump in terms of required allocation to achieve its ambitious goals envisaged in the 12th Five Year Plan.

The Public Private Partnership (PPP) is now left with the only option to finance project of infrastructure deficient country but it cannot be done only with mere slogans and wishes. In a bid to keep the size of PSDP within desired limit, the government slapped a ban on inclusion of unapproved projects into the PSDP list.

“We have given deadline of April 10, 2019 (today) to all ministries/divisions and departments for sharing the lists of approved projects that would be made part of next PSDP for next fiscal year,” top official sources confirmed to The News, Tuesday.

The Priorities Committee of Planning Commission kick-started meetings with ministries/divisions on Tuesday. The meetings would continue till coming Friday to firm up development outlay for the Annual Plan Coordination Committee (APCC).

In the maiden session of Priorities Committee, the Ministry of Water and Power had sought allocation of Rs200 billion for the next budget. The Pakistan Atomic Energy Commission (PAEC) also presented its financing demands for ongoing and a couple of new schemes.

Keeping in view resource scarcity, the Planning Commission raised objections that they had earmarked over Rs23 billion for Diamer-Bhasha dam but this money could not be utilized during the current fiscal year. Now the Ministry has again sought over Rs30 billion for Bhasha dam in the next budget. For Mohmand dam, the ministry also sought funds to the tune of Rs35 billion.

Although, funds allocations is yet to be finalized, the government is considering making increased allocation for the dam where the construction work has already started. With the possibility of entering into a fresh arrangement with the IMF for seeking multibillion bailout package, the government is following tight fiscal position where the development program has been axed massively in the name of adjustments to slash down the budget deficit.

“The indicative budget ceiling (IBC) for development stands at Rs675 billion for next

budget 2019-20 making it crystal clear that no mega development projects could be financed with meager allocation,” said the official sources. With restrictions for inclusion of only approved development projects, the government has barred inclusion of all kinds of unapproved projects into the PSDP list.