The Finance Ministry has proposed a ceiling for development projects in all Ministries and Divisions in the budget for fiscal year 2010-11 within total outlay of Rs 300 billion Public Sector Development Programme (PSDP), Business Recorder has learnt. The proposed ceilings will be tabled before the Priorities Committee, Annual Plan Co-ordination Committee (APCC) and National Economic Council (NEC) for approval.
Sources said that the Finance Ministry, in consultation with the Planning Commission, has directed Ministries and Divisions to place a request for funds allocation from 10 to 20 percent for new projects and 80 percent for ongoing projects according to their ceilings.
In its budget strategy paper, the Finance Ministry has already proposed Rs 300 billion PSDP for the upcoming financial year 2010-11. The government has reduced the size of current year's PSDP from Rs 421 billion to Rs 300 billion due to poor cash inflows from the Friends of Democratic Pakistan (FoDP).
The Ministry has proposed to earmark Rs 30 billion for water sector in the upcoming budget. The government had allocated Rs 47.2 billion for water sector in 2009-10 PSDP, which has been reduced to Rs 28.5 billion due to financial constraints. The proposed allocation for People's Works Program (PWP)-1 stands at Rs 4.42 billion and Rs 30 billion for PWP-2 for next financial year 2010-11.
The government had earmarked Rs 35 billion for PWP-1 and 2 in 2009-10 budget for the development schemes of parliamentarians, which have faced no cut under the directives of the Prime Minister. The proposed allocation for Higher Education Commission (HEC) is Rs 18.5 billion, against Rs 22.5 billion earmarked for ongoing financial year. Due to financial constraints, the government has slashed it to Rs 18.5 billion in revised PSDP 2009-10.
Pakistan Atomic Energy Commission (PAEC) 2010/11 budgetary allocation proposed is Rs 18.5 billion, against Rs 19.5 billion earmarked in budget 2009-10. Rs 19 billion is proposed in the next year's budget allocation for health sector against budgetary allocation of Rs 23.15 billion for ongoing financial year. The government has slashed its funds to Rs 18.5 billion due to poor financial health of the country.
The Ministry of Food and Agriculture will be earmarked funds amounting to Rs 12 billion against Rs 17 billion for ongoing financial year. The proposed budgetary allocation for Education Ministry for next year is Rs 5 billion against Rs 8.5 billion earmarked in budget 2009-10 which has been revised downwards to Rs 5.5 billion.
The proposed allocations for next year's budget for other ministries are as follows: Ministry of Industry Rs 4 billion; Housing Rs 4.5 billion; Defence Division Rs 5.7 billion; Population Rs 5 billion; Cabinet Division Rs 4.2 billion; Science and Information Technology Rs 2 billion; Environment Rs 1.55 billion; Revenue Division Rs 1.5 billion; Special Initiative Programme Rs 2.3 billion; Petroleum Ministry Rs 1 billion; Defence Production Division Rs 1.6 billion.
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