PSDP scaled down: measures being considered for fiscal management, National Assembly told

Minister of State for Finance, Hina Rabbani Khar on Friday informed the National Assembly that Public Sector Development Programme (PSDP) has been scaled down to Rs 190 billion for the current fiscal year and other measures pertaining to expenditure control are being considered for fiscal management.
While replying to questions, the minister said the government is also working on reduction of expenditure being incurred on travelling and vehicles. She said the government would consider the measures proposed by the Finance Standing Committee of the House to reduce the expenditure.
"We are ready to give full briefing on the restructuring of the Federal Board of Revenue (FBR) as well as to consider their proposals to make improvement wherever possible," the minister added. She said a massive restructuring was done in the FBR and all those officials who were accused have been removed from their offices and an inquiry was going on against them to award punishment in the light of the probe findings.
The finance ministry in a written reply informed the House that according to provisional data for the period of first six months of current fiscal year, the overall fiscal deficit touched Rs 491 billion and total bank borrowing since March 2008 to December, 2010 stood at Rs 1.1 trillion.
The reasons for higher fiscal deficit and bank borrowing are increased expenditure on security measures, subsidies to power and food sector and low external inflows and decline in revenue collection by the FBR. The government paid Rs 170 billion interest on borrowings from the banks during July-December 2010-11. The National Assembly was also informed that the federal government has transferred Rs 379.780 billion from divisible pool to the provinces under the National Finance Commission Award to the provinces up to January 17, while straight transfers stood at Rs 52. 826 billion.
Khyber Pakhtoonkhwa was given Rs 59.142 billion from divisible pool till January 17 during the current fiscal year, Rs 187.45 billion were transferred to Punjab, Rs 88.802 billion to Sindh and Rs 44.386 billion to Balochistan. Under straight transfers, Rs 7.412 billion have been transferred to Khyber Pakhtoonkhwa, Rs 4.802 billion to Punjab, Rs 33.142 billion to Sindh and Rs 7.47 billion to Balochistan.