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Sindh government has increased allocation for development spending by 23 percent against the revised development budget of Rs 72. 3 billion for 2007-08.
"Despite fiscal constraints we have decided not to cut down the development spending as we must provide services and programmes that can facilitate urgent relief and help us move towards long term economic consolidation and growth," Sindh Chief Minister Syed Qaim Ali Shah told the budget session of Sindh Assembly on Monday.
With the total size of Rs 89.3 billion Development Portfolio the government has allocated Rs 55.0 billion, Rs 12.0 billion, Rs 12.7 billion, Rs 9.09 billion and Rs 0.51 billion for Provincial Annual Development Program (ADP), District Governments, Federal Development Grants, Foreign Project Assistance and DERA respectively.
The Development Portfolio, he said, was 23 percent higher than the Revised Development Budget of Rs 72.3 billion for 2007-08. In terms of Provincial and District ADP he proposed to allocate Rs 67 billion as against Rs 50 billion of 2007-08 marking an increase of 34 percent.
In terms of Sectoral allocation, Shah said the biggest share of 16 percent had gone to the Transport and Communication sector (which included significant allocation for farm to market roads) of which budget has been raised to Rs 9 billion against the Rs 7.66 billion of 2007-08. Through this allocation, he said, 586 schemes covering a road network of 1200 kms, improvement of 500 kms roads and 10 bridges were being executed.
As many 45 schemes were expected to be completed, he added. He said in terms of strategic arteries and bridges, the Khairpur-Larkana Bridge over the River Indus was being constructed by National Highway Authority (NHA) with another bridge on the same river from Sakrand to Sehwan had also been included in the federal Public Sector Development Program (PSDP).
The Sindh government has also proposed a 100 percent increase in Rs 5 million funds for MPAs' Priority Programme, which if approved would reach to Rs 10 million.
Rs one billion had been allocated for village electrification and provision of Sui Gas to villages in the next budget, he said. To protect and project historical heritage of the province in multiple ways the PPP-led Sindh government, Shah said, was launching a Sindh Heritage Fund with Rs 1 billion. "For this an allocation of Rs 200 million has been made. This fund will be managed through a Board comprising public and private sector people having a background of this subject," he added.

Copyright Business Recorder, 2008

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