Government increases development spending by 9% to Rs730b

Centre’s share to be Rs290 billion and provinces to get Rs430 billion.


Zafar Bhutta June 04, 2011

ISLAMABAD:


The government has increased the public sector development budget by nine per cent to Rs730 billion for the upcoming financial year, with centre’s share being Rs290 billion and provinces getting Rs430 billion.


An amount of Rs10 billion was allocated for  the Earthquake Reconstruction and Rehabilitation Authority (Erra) for financial year 2011-12, according to the budget document.

Of the total development budget, an amount of Rs76.8 billon will be arranged through foreign loans and Rs653.2 billion through local financing for development projects in 2011-12.

Despite the country’s severe energy crisis, the government reduced allocation for the power sector to Rs115.24 billion against Rs118.34 billion earmarked for the ongoing financial year, according to the budget 2011-12 documents. The Pakistan Electric Power Company (Pepco) gets a slight relief as it will generate Rs72.29 billion from its own resources for power projects against Rs76.88 billion budgeted for the ongoing financial year.

However, the allocation for the water sector has been increased to Rs36.13 billion from Rs28.4 billion in ongoing financial year for mega projects, with Rs32.86 billion for ongoing projects and Rs3.27 billion for new schemes. The allocation for Pakistan Atomic Energy Commission (PAEC) increased Rs22 billion for 2011-12 from Rs15.22 billion.

An amount of Rs2.55 billion has been earmarked for the ongoing Chashma Nuclear Power Project C-2 Mianwali. The government increased the allocation of Pakistan Nuclear Regulatory Authority to Rs350 million from Rs246.9 million in the ongoing financial year.

The Water and Power Development Authority (Wapda) got Rs32.5 billion allocated while Rs39.9 billion was set aside for National Highway Authority.

The communication sector excluding National Highway Authority (NHA) got Rs172 million whereas Rs15 billion for Railways to ensure economic integration and balanced regional development.

The federal government made no allocation for the 15 ministries that will be devolved to the provinces, however, under the 18th Amendment it was supposed to transfer Rs217.7 billion to the provinces. These ministries include Health Division, Food and Agriculture Division, Education Division, Population Welfare Division, Livestock and Dairy Development Division, Environment Division, Special Initiatives Division, Women Development Division, Social Welfare and Special Education Division, Labour and Manpower Division, Local Government and Rural Development Division, Tourism Division, Culture Division, Sports Division and Youth Affairs Division.

Published in The Express Tribune, June 4th, 2011.

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