Rs190b: Punjab’s expected developmental spending

LAHORE: The Punjab government is expected to unveil a Rs190 billion annual development programme (ADP) for the upcoming financial year of 2010-2011 in a special assembly session on June 11.

A government official stated that the focus of the ADP will remain primarily on the development of the social sector. He added that a salary and pension review for all government employees would also be announced in line with the federal government’s decision.

The development budget funds have steadily increased over the past few years. The allocation was Rs150 billion in 2007-2008, Rs160 billion in 2008-2009 and Rs175 billion for the year ending June 30, 2010.

In 2009-2010, the Punjab government had earmarked Rs60 billion for the social sector out of an aggregate of Rs 175 billion.

This year the amount is expected to be increased to Rs70 billion through a special allocation. The social sector encompasses a wide range of departments including education, health, water supply and sanitation, social protection and regional planning.

Block allocations have also gone up from Rs36 billion last year to Rs40 billion. These funds will be reserved specifically for the initiation and executive of 26 development schemes in the pipeline.

Block allocations remain under the direct discretion of the chief executive of the province (the Punjab chief minister) who sanctions or releases the funds for the completion of various public welfare projects.

The funds are sanctioned on a priority basis depending on the requests made by ruling lawmakers.

As per the new National Finance Commission formula, the Punjab government is expected to receive an additional Rs75 billion (a total of Rs393 billion) as net tax revenue from the divisible pool.

The current expenditure for the upcoming year is expected to average out to Rs350 billion as opposed to Rs314 encountered last year.

The Punjab government earmarked Rs175 billion for over 4,300 development schemes for the year 2009-2010. The Finance department released Rs160 billion for the purpose while only Rs130 billion have been utilised thus far.

Published in the Express Tribune, June 6^th, 2010.