Planning Commission, Finance differ over fiscal year 2011 PSDP

Differences have emerged between Planning Commission and Finance Ministry over the size of federal component of Public Sector Development Programme (PSDP) 2010-11 as the former has recommended Rs 400 billion against Rs 328.3 billion with operational shortfall of Rs 28.3 billion proposed by the latter, Business Recorder has learnt.
"The total size of development budget may be around Rs 659.9 billion if Annual Plan Co-ordination Committee (APCC) scheduled to meet on Friday (today) recommends Rs 328.3 billion PSDP with operational shortfall of Rs 28.3 billion proposed by Priorities Committee with provincial share of Rs 321 billion and Erra's allocation Rs 10 billion," sources said.
"On the other side, the size of development budget 2010-11 for the whole country may be Rs 721 billion, including Rs 400 billion federal share proposed by Planning Commission and Rs 321 billion provincial share if it is recommended by APCC," they added. The APCC will meet with Deputy Chairman Planning Commission Dr Nadeem-ul-Haq to consider the PSDP size and Annual Plan. But the final decision rests with National Economic Council (NEC) scheduled to meet on May 28 with Prime Minister Syed Yousuf Raza Gilani in the chair to finalise the development budget outlay for 2010-11.
Planning Commission has opposed the size of PSDP at Rs 300 billion given by Finance Ministry, saying that it would not meet the funds requirement of the ongoing projects. Out of the Rs 328.3 billion proposed federal share with Rs 28.3 billion operational shortfall in development budget, federal ministries share has been estimated at Rs 192.6 billion, Rs 34.4 billion for special programmes for 2010-11.The allocations for special areas stand at Rs 32 billion, Rs 69.3 billion for the corporation, Rs 162.9 billion for social sector, Rs 153.7 billion for infrastructure and Rs 11.7 for production supporting sector.
Social sector allocation includes; Rs 24.2 billion for education and higher education, Rs 21 billion for health, Rs 5.7 billion for Population Welfare Programme and Rs 9.2 billion for ensuring good governance. Within infrastructure, Rs 38 billion, Rs 32.8 billion and Rs 81.3 billion have been proposed for Water, Power and Transport & Communication sectors, respectively.