Planning Commission has requested the Ministry of Finance to allocate Rs 375 billion for Public Sector Development Programme (PSDP), including ERRA''s Rs 10 billion for the next fiscal year. Briefing the National Assembly Standing Committee on Finance on budgetary proposals for the next fiscal year, Secretary Planning Division, Sohail Ahmed, said that Rs 500 billion PSDP was demanded by the ministries and divisions.
He said that a realistic assessment by the Planning Commission indicates that Rs 365 billion would be required for the next year''s PSDP. But the Finance Ministry does not have sufficient fiscal space and has indicated to earmark Rs 280 billion for the next fiscal year''s PSDP. Sohail said that the problem for him was how to manage PSDP for next fiscal year with Rs 280 billion especially when reduction of Rs 100 billion in 2010-11 would also to be managed during 2011-12.
Moreover, he said that the effects of floods would continue to have impact on the PSDP during 2012 also with the clear directives that projects nearing completion be fully protected along with their contractual binding with foreign donors. Sohail said planning and development division has identified six priority areas and the funding required for them. The priority areas are infrastructure and social sector and the priority projects identified relates to water, energy, highways, railways and education.
Sohail said that the federal government would also have to bear the financing of vertical projects for health sector after the decision taken by the Prime Minister at Council of Common Interest (CCI) that federal government would continue funding them for next five years. He said that to implement the decision of CCI, planning and development division would require Rs 22 billion PSDP in the next budget.
As per Planning Commission assessment, Rs 50 billion would be required under PSDP for water related projects including Mangla Dam whereas the finance ministry has indicated to give Rs 35 billion. Similarly, he said against the demand of Rs 65 billion for energy projects, the finance ministry allocated Rs 50 billion. The Planning Commission demanded Rs 50 billion for national highways and amount was reduced to Rs 37 billion in the PSDP.
The Finance Ministry has also reduced the Planning Commission demand for allocation of Rs 17 billion each for Railways and Higher Education Commission to Rs 14 billion each. Sohail Ahmed said energy projects included Chashma nuclear projects and Diamer Bhasha dam, locomotives for railways and doubling of tracks. He said that Rs 13 billion would be required for Mangla Dam raising next fiscal year.
The finalisation of the PSDP demanded by the Planning Commission in the light of the demands made by ministries and divisions during the meeting of priorities committees, and the size proposed by the Finance Ministry would be finalised tomorrow (Thursday) meeting of Annual Planning Co-ordination Committee (APCC) and would be approved by the National Economic Council (NEC) likely to be held after May 21. The Parliamentarians wanted that PSDP size should be expanded and it should be driving force of government policies for social and economic development.
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