Provinces seek 56% raise in development plan for next budget

The four provinces have informed the Centre that their development outlay for the upcoming budget would be increased to Rs912.340bn in 2019-20, against revised estimates of Rs584.942bn in outgoing 201819 fiscal year.

It was reported earlier this month that the provinces would slash their overall development funding by 42% in outgoing fiscal year 2018-19, to the tune of Rs584.94bn, against an initial allocation of Rs1,013bn.

The four provinces have proposed an overall 56% increase in their development outlay for the upcoming budget.

“Punjab has proposed more than double allocation in its annual development plan for the upcoming financial year,” official sources said.

On other hand, the Khyber Pakhtunkhwa government has slashed its allocation for development for the upcoming budget, as they proposed an allocation of Rs142bn in next fiscal 2019-20 against revised estimates of Rs181bn for the outgoing fiscal year 2018-19.

Punjab’s allocation for Annual Development Plan (ADP) is proposed to be jacked up to Rs400bn for the coming financial year 2019-20, against revised estimates of Rs165bn, indicating 142.4% increase in its allocation for the coming budget.

Out of total ADP of Rs400bn, Punjab will allocate Rs373bn in shape of local rupee component from its own resources, while Rs27bn will be obtained as foreign project assistance in 2019-20.

Sindh’s ADP is proposed to increase to Rs290.3bn in the coming budget against revised estimates of Rs192bn in outgoing fiscal year.

Out of proposed ADP of Rs290.3bn, Sindh proposed the

local component of Rs245.3bn and Rs45bn in shape of foreign project assistance.

In a strange move, the Khyber Pakhtunkhwa government reduced its proposed allocation from Rs181bn in outgoing fiscal to Rs142bn for the next budget.

Out of total Rs142bn in shape of ADP, KP government will generate Rs85bn in shape of local rupee component and remaining Rs57bn as foreign project assistance in coming financial year.

The Baluchistan government has almost doubled its proposed allocation for annual development plan for the coming budget as it increased its allocation from Rs42.25bn in outgoing fiscal year to Rs80bn for the execution of development projects in next financial year 2019-20.

While the other provinces are seeking to increase their development funding, the Khyber Pakthunkwa government has cut its allocation from Rs181bn to Rs142bn

Out of total allocation of Rs80bn, Baluchistan will generate Rs72bn in shape of local rupee component and remaining Rs8bn as foreign aid in the coming financial year.

In order to kick-start sluggish economic activities, the public sector investment is considered the most important tool to revive stalled economic activities.

The development work got stalled in last one year both at Centre and provincial levels at a time when the GDP growth nosedived and inflation was on rise and the chances of plunging into stagflation were on rife the increased public investment could result into starting economic activities and providing jobs at this difficult time.

The importance will be effective utilisation of taxpayers’ money, the official sources said.