Ministries have lodged a strong protest over cut in budget earmarked under public sector development programme (PSDP 2010-11). Sources told Business Recorder that miniseries had written letters to Planning Commission (PC) protesting the cuts in PSDP. Government has reduced PSDP allocation by Rs 100 billion from Rs 280 billion earmarked in budget 2010-11 to Rs 180 billion.
"Planning Commission has directed all ministries to rationalise projects keeping in view the reduction in budget earmarked for development projects under PSDP," sources said adding that government was only protecting projects in Balochistan, Azad Jammu and Kashmir (AJK), Federally Administered Tribal Areas (FATA), Gilgit Biltistan and special areas.
Government has placed a cut of Rs 92 billion on local component of PSDP and Rs 8 billion on foreign component due to slow disbursements from external resources. Around Rs 88.1 billion was released to different ministries and divisions for development projects during July-February 12, 2011 - or 36.4 percent of total amount earmarked in budget.
Out of this amount Rs 32.7 billion has been released for infrastructure projects, Rs 53.7 billion for social sector projects and Rs 1.6 billion for projects in other sectors. Government had earmarked Rs 280 billion for development projects under PSDP 2010-11.The amount allocated in local currency was Rs 242 billion that has been reduced to Rs 150 billion.
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