PSDP volume reduced by Rs 18 billion

ISLAMABAD - The federal government keeping in view the economic crisis has decided to reduce the volume of the Public Service Development Programme (PSDP) for the year 2008-09 by 18 billion rupees. The sources said that now the total volume of the PSDP has been reduced to 523 from 541 billion rupees, approved by the National Economic Council as suggested by the Planning Commission. The federal share in the PSDP will now be 373 billion rupees, instead of 371 billion rupees, while the share for the provinces has been reduced to 150 billion rupees from 170 billion rupees. The economic crunch also pressed the government to review its economic indicators for the next financial year. The NEC meeting had also reduced the GDP economic growth target suggested by the commission from 6.5 to 5.5 percent. Economic pressure on the government has forced it to revise its target, which was proposed by the Planning Commission for the next fiscal year. Now the agriculture growth target is being fixed at 3.5 per cent instead of 4.5 per cent. The services sector target is also being curtailed from 6.5 to 6.1 per cent. The inflation rate for the next financial year has also been revised and it will be now 11 per cent instead or 8 per cent as proposed by the Planning Commission.

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