ISLAMABAD - The government has decided to allocate a sum of Rs 525 billion for Public Service Development Projects in the budget for next financial year 2014-15.
The aforementioned decision was taken in meeting in Planning Commission headed by Federal Minister for Planning Ahsan Iqbal. The allocation of Rs 525 billion for PSDP for the financial year 2014-15 is part of government’s vision 2025. The government has decided to allocate less volume of PSDP for the next financial year compared to the outgoing fiscal year mainly to restrict the budget deficit within limit of 4.9 percent of the GDP agreed with the IMF. The PSDP volume for next year would be Rs 525 billion as against Rs 540 billion of the outgoing year. PML-N government had allocated Rs 540 billion for PSDP for the ongoing financial year 2013-14, which later slashed to Rs 425 billion because of lesser revenue collection made by Federal Board of Revenue. FBR has reduced the revenue collection target by Rs 200 billion to Rs 2275 billion from budgetary target of Rs 2475 billion for FY2014. As per an official handout released by planning commission, Ahsan Iqbal, Federal Minister Planning, Development & Reform said, “Next year’s PSDP will reflect development priorities of the government included in Vision 2025”. Ministry of Finance has so far indicated space of Rs 525 billion as indicative ceiling for PSDP. There is an over one trillion rupees through forward of ongoing schemes. The guiding principles given to ministries are to complete the projects during next year which have 70pc releases so far, complete projects with 50pc plus releases in next two years and cap low priority or low value projects with low utilisation to save further waste of resources on them. Ahsan Iqbal further stated in the meeting that the priority sectors for next year will be human resource development, energy, water, infrastructure, and value addition in productive sectors for export enhancement. Pak China Economic Corridor projects will be given priority for early completion. “For development needs of a population of 180 million, $5 billion development budget is inadequate, we hope that size of PSDP can be enhanced however that depends on the availability of future tax collections”, he said.