Wednesday, June 3, 2009

Rs620bln development budget proposed

ISLAMABAD: The total development budget of the country for next fiscal year has been recommended Rs620 billion to the National Economic Council, which includes Rs190 billion to develop Chashma –III and Chashma –IV nuclear energy plants.

The recommendations have been forwarded by the Annual Plans Coordination committee (APCC) on Tuesday for the NEC, scheduled to be held in Islamabad on June 4, the NEC would be chaired by the prime minister.

The APCC has recommended Rs262 billion for federal ministries in the Public Sector Development Program (PSDP) for 2009-10, the recommendations includes Rs38 billion for special areas including AJK, FATA and northern areas, Rs35 billion have been recommended for special programs and Rs60 billion have been recommended for corporations.

The APCC has recommended Rs200 billion for the development budget of provinces, and Rs25 billion for the earthquake reconstruction.

The APCC papers for the NEC said that the broad sectoral distribution of federal PSDP includes Rs195 billion for infrastructure, Rs164 billion for social sector, Rs18 billion for agriculture, industries, minerals, Rs12 billion for science and technology and Rs6 billion for environment.

APCC has proposed that Rs190 billion for the development of nuclear plants C-3 and C-4 to generate 600 megawatt electricity by 2016.

Another important aspect of the proposals is that the allocations for health sector has been suggested to be raised by 82 per cent to Rs26 billion in the fiscal 2009-10.

Major programs in the federal health sector includes Rs6 billion for EPI, Rs3 billion for mother and child health, Rs7 billon for primary health care.

While the allocations for education and training has been increased by 60 per cent to Rs32 billion for the next fiscal year.

The paper said that water sector allocations has been proposed at Rs58 billion, that accounts to almost 14 per cent of the total federal program. It said that 32 small and medium dams, eight in each province are being financed in the next fiscal year.

Rs12 billion have been proposed to complete the Mangla dam raising project, as a result 2.88 million acre feet additional water could be stored in the dam in next monsoon season.

Rs139 billion have been proposed for energy sector including electricity generation and conservation projects.

Transportation and communication sector has been allocated Rs70 billion in the APCC proposals and Rs12 billion for improvement of railways.

To save the agriculture produce modern grain storage facilities are proposed at Rs27 billion and Rs3.5 billion has been proposed for public private partnership in the field of dairy development.

For the continuation of housing program for poor and government officials that was initiated in the current fiscal year, the APCC has proposed RS1 billion to continue the project.

The APCC in its proposals to the NEC has said that Thar coal infrastructure will be developed in the next fiscal and the World Bank has pledged grant assistance for preparation of the project.

‘The government of Sindh is allowed to negotiate loans with the world bank,’ the paper said.

The recommendations for the NEC said that to sharpen the skills of labour force ‘Hunarmand Pakistan Programme’ would be launched to improve skills of the labour which will create demand for Pakistani workforce abroad also.

Pakistan had requested the IMF to increase the fiscal deficit limit from 3.4 per cent to 4.6 per cent to accommodate the additional amount of around Rs160 billion in the development budget for the next fiscal.

Deputy chairman planning commission Sardar Aseff Ahmed Ali said that increased allocations for development budget would help the government fight poverty.

‘This would be a support the government to fight terrorism reducing joblessness,’ he said. The National Economic Council is expected to consider enhance the powers of Central Development Working Party (CDWP) for sanctioning development schemes.

The CDWP, currently, is authorised to sanction projects up to Rs 500 million for the federal government and projects exceeding this limit are submitted for approval to the Executive Committee of the National Economic Council (ECNEC).

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