It appears the federating units are not just relying on the centre for revenue. The reliance also continues when it comes to matters of energy, as to this date there has not been any significant step taken to boost power generation by provinces, even after they gained autonomy in the 18th Amendment. The provincial budgets by the three provinces thus far also reflect the same.
Punjab, Sindh and KPK have budgeted a grand total of Rs44 billion (seven percent) on energy development for FY14, out of combined amount of Rs603 billion allocated for their respective Annual Development Plans. The federal PSDP on the other hand is nearly the same size - at Rs617 billion - but with a much higher allocation for energy related projects at Rs221 billion (36 percent).
The PML-N has been most vocal on the energy crisis, especially in the centre; yet the Punjab government lacks the same zest. Of Rs290 billion allocated for development, Punjab has budgeted Rs20.4 billion for energy in 2013-14 - seven percent of the ADP.
Though the amount is double of what was allocated for 2012-13, if history is any guide, there seems little hope of the entire amount being spent, as the Punjab government has slashed the spending on energy development to half in three previous attempts.
Even if Punjab spends the whole of the Rs20 billion in energy, the break-up of the allocation casts doubts over its efficacy and timeliness, as a major chunk of Rs8 billion would go to the creation of an Energy Development Fund, which is yet to be approved. Another Rs7.5 billion would be spent for providing subsidy on solar tube wells, which begs the question as to how does provision of subsidy fall under the ambit of development spending.
Sindh, on the other hand has allocated higher amount for energy development than Punjab even in absolute terms. The Rs21.7 billion is a split between coal and other energy development. While the Sindh government has been working on Thar coal infrastructure, the pace of work is believed to be too slow and allocations too small for the project to start in time.
KPK government has allocated an even smaller amount for energy development - a mere Rs2.2 billion out of Rs118 billion ADP. The KPK Finance Minister in his budget speech hinted that the province already produces more than its requirements; therefore, electricity generation is not a concern, which reflects in the tiny allocation.
Agreed, that the provincial budgets are more about social spending where KPK has taken the lead letting everyone know of its priorities. But if provincial budgets are anything to go by, it would be long before the provinces start generating power on their own, just as it seems long before they start making sufficient revenue of their own.
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