Uplift budget cut by 13pc for FY 2019-20

The federal and four provincial governments have proposed nearly Rs1.6 trillion for development spending in next fiscal year, which is lower by Rs227 billion or nearly 13 per cent due to International Monetary Fundbacked fiscal consolidation programme.

The Annual Plan Coordination Committee (APCC) recommended Rs1.586-trillion National Development Budget for fiscal year 2019-20 to the National Economic Council. The budgetary allocations for new fiscal year are lowered by Rs227 billion when compared with Rs1.813 original allocations outgoing fiscal year.

In an illegal move, Asif Sheikh whose contract was terminated on May 15 after Islamabad High Court declared his appointment illegal, made presentation on the next year's budget to the APCC. The Planning Ministry last week notified to terminate Sheikh's contract and his action of sitting in the APCC meeting tantamount to contempt of IHC judgment.

The Rs1.586 trillion is exclusive of Rs250 billion that the federal government plans to spend outside its budget aimed at partially compensating low budgetary trillion for the allocations for the development purposes.

The APCC approved a total Rs1.837 trillion for development spending by federal and provincial governments, said Federal Minister for Planning and Development Makhdoom Khusro Bakhtiar, after chairing the APCC meeting.

The minister said that Rs675 billion have been allocated under federal Public Sector Development Programme (PSDP) and Rs250 billion will be spent under public-private partnership mode.

He said that the next year's federal PSDP will be used only to fund projects of national importance and added that the federal PSDP cannot be seen with the lens of province-wise allocations.

"The government has made best PSDP plan while keeping in mind the fiscal challenges being faced by the country," the minister noted.

Nearly Rs350 billion will be arranged from foreign lenders to finance the country's development needs.

The planning minister said that in the next fiscal year 200 new projects will be initiated and the government has allocated 27pc of the federal PSDP for the new schemes.

Bakhtiar maintained that the government will fully fund those ongoing schemes where more than 80pc work is already completed.