Provinces seek 56pc raise in development plan for budget 2019-20

ISLAMABAD: The four provinces have informed the Centre that their development outlay for upcoming budget proposed to jack up to Rs912.340 billion in 2019-20 against revised estimates of Rs584.942 billion in outgoing fiscal year 2018-19.

The four provinces have proposed 56 percent increase in their development outlay for the upcoming budget. “Punjab has proposed more than double allocation in its annual development plan for the upcoming financial year” official sources confirmed to The News here on Thursday. On other hand, the Khyber Pakhtunkhwa government has slashed down its allocation for development for the upcoming budget as they proposed an allocation of Rs142 billion in next fiscal 2019-20 against revised estimates of Rs181 billion for the outgoing fiscal year 2018-19. Punjab’s allocation for Annual Development Plan (ADP) proposed to jack up to Rs400 billion for the coming financial year 2019-20 against revised estimates of Rs165 billion, indicating 142.4 percent increase in its allocation for the coming budget. Out of total ADP of Rs400 billion, Punjab will allocate Rs373 billion in shape of local rupee component from its own resources while Rs27 billion will be obtained as foreign project assistance in 2019-20.

Sindh’s ADP proposed to increase to Rs290.3 billion in the coming budget against revised estimates of Rs190 billion in outgoing fiscal year. Out of proposed ADP of Rs290.3 billion, Sindh proposed local component of Rs245.3 billion and Rs45 billion in shape of foreign project assistance.

In a strange move, the Khyber Pakhtunkhwa government reduced its proposed allocation from Rs181 billion in outgoing fiscal to Rs142 billion for the next budget. Out of total Rs142 billion in shape of ADP, KP government will generate Rs85 billion in shape of local rupee component and remaining Rs57 billion as foreign project assistance in coming financial year.

The Balochistan government has almost doubled its proposed allocation for annual development plan for the coming budget as it increased its allocation from Rs46 billion in outgoing fiscal to Rs80 billion for execution of development projects in next financial year 2019-20. Out of total allocation of Rs80 billion, Balochistan government will generate Rs72 billion in shape of local rupee component and remaining Rs80 billion as foreign aid in the coming financial year.

In order to kick-start sluggish economic activities, the public sector investment is considered the most important tool to revive stalled economic activities. The development work got stalled in last one year both at Centre and provincial levels at a time when the GDP growth nosedived and inflation was on rise and the chances of plunging into stagflation were on rife the increased public investment could result into starting economic activities and providing jobs at this difficult time. The importance will be effective utilisation of taxpayers’ money, concluded the official.