The National Economic Council (NEC), which is likely to meet on June 1, 2009 with Prime Minister Syed Yousaf Raza Gilani in the chair, is expected to enhance powers of Central Development Working Party (CDWP) for sanctioning development schemes. Presently the CDWP is authorised to sanction projects costing up to Rs 500 million for the federal government.
Sources said that Planning Division headed by Makhdum Shahab-ud-Din was actively preparing a proposal for the NEC, according to which sanctioning powers of the CDWP will be enhanced from existing Rs 500 millions project to project costing up to Rs 750 millions.
The sources said that the NEC would review federal Public Sector Development Program (PSDP) and provincial Annual Development Plans (ADPs) 2008-09, besides approving PSDP and ADPs of 2009-10. The meeting would also review ADPs 2008-09 and proposed ADPs 2009-10.
During the meeting the approach papers on the 10th Five Years People''s Plan (2010-15) and other economic indicators would also come under discussion. Sources said the Prime Minister Secretariat was preparing to address the grievances of provinces regarding delay in release of funds. They said that the provinces would likely to complain about slow release of funds earmarked for the projects.
According to reports, Finance Ministry has released Rs 120 billion for the ongoing development projects under PSDP during the first nine months (July-March) of 2008-09. The government had allocated Rs 371 billion for Federal PSDP and Rs 170 billion for provincial PSDPs during the current financial year (2008-09). It deducted Rs 34 billion for Benazir Income Support Programme (BISP) from the Federal PSDP and put it into recurring budget.
After the deduction, the government allocation for the Federal PSDP totalled at Rs 337 billion. A slash of Rs 118 billion due to financial constraints, reduced the allocation further to Rs 219 billion. The Rs 118 billion cut in PSDP is Rs 18 billion higher than the announced cut of Rs 100 billion during Prime Minister''s visit to the Planning Commission on February 13.
Financial constraints have further compelled the government to cut the PSDP for the current financial year. Due to financial constraints, the Planning Commission has also proposed that the provinces should generate funds from their own resources to complete development projects, as the Federal government is faced with severe financial constraints in 2009-10.
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