All four provinces cut uplift funding by 42pc

ISLAMABAD: All four provinces have slashed down their development funding by 42 per cent in outgoing fiscal year 2018-19 as the revised estimates showed that the development funds would be utilised to the tune of Rs584.94 billion against initial allocation of Rs1,013 billion.

“The provinces have remained unable to utilise development funds during the outgoing financial year, and they have revised downward their projection” top official sources confirmed to The News here on Friday.

Punjab, the largest populace province of the country, has informed the Center that the revised estimates for annual development plan (ADP) showed that it was going to utilise Rs165 billion during the outgoing financial year 2018-19, including Rs130 billion in shape of local rupee component and remaining Rs35 billion as Foreign Project Assistance (FPA). Punjab had allocated Rs238 billion for the ADP in the current fiscal year.

Sindh, the second biggest province, has showed that its ADPs was slashed down to Rs192 billion from original allocation of Rs223 billion for the current fiscal year. The revised estimates of ADP show that the rupee component stood at Rs164.5 billion and remaining Rs28.136 billion in shape of foreign project assistance.

The Khyber Pakhtunkhwa (KP) province did not slash down its revised allocation from Rs181 billion in its revised estimates during the current fiscal year. Out of Rs181 billion ADPs, the rupee component stood at Rs108.9 billion and foreign project assistance Rs72.1 billion.

Balochistan’s ADP stood at Rs42.250 billion, out of which the rupee component was allocated at Rs40 billion and remaining Rs6.250 billion allocated in shape of foreign project assistance.

The last National Economic Council (NEC), in its meeting held on April 24, 2018, had approved National Development Programme for 2018-19 at Rs2,043 billion, including Provincial ADPs at Rs1,013 billion. The size of Federal PSDP for 2018-19 is set at Rs1,030 billion, including foreign assistance of Rs171 billion and Rs100 billion financing on PPP mode.

Then the federal PSDP was revised downward to Rs675 billion. Now the provincial ADPs also remained unable to utilise whole allocated amount. The development programmes were slashed down at a time when the economy was slowing down. In order to jump start sluggish economic activities, it is imperative to boost up public sector investment.

The provinces argued that the FBR faced shortfall of Rs345 billion in current fiscal year so the share of provinces under the NFC Award also got slowdown. Consequently, the ADPs got affected negatively. It is hoped that the next ADPs would be made keeping in view the ground realities of respective four provinces.