ISLAMABAD The Annual Plan Coordination Committee (APCC) on Friday recommended the development outlay including Public Sector Development Programme (PSDP) worth Rs 601 billion to the National Economic Council (NEC). The APCC met under the chair of Dr Nadeem-ul-Haq, Deputy Chairman Planning Commission, on Friday. The development outlay has been proposed in line with the Finance Divisions Medium-term Development Framework 2010-13 to place the economy on a sustainable growth path by investing in social and physical infrastructure in the country. Due to financial constraints, the Government proposed PSDP only Rs 280 billion as federal component and it was decided that priority was given to the on-going projects rather than new projects. The social sector has been allocated 49 percent of the total PSDP while the physical infrastructure would get 47 percent of the PSDP. Meanwhile, the APCC recommended Rs 321 billion for the provinces for their development projects as per their sectoral priorities under respective annual development plans. Sources informed that NEC would meet on May 28, which will be chaired by Prime Minister Yousuf Raza Gilani to approve the said developmental outlay of Rs 601 billion. The sources informed that the Government had proposed 88 percent allocation for ongoing projects while the rest for new approved developmental projects. It is worth mentioning here that the Federal Ministries and Divisions were demanding Rs 328.3 billion under PSDP for various developmental projects but due to the financial constraints, the APCC proposed only Rs 280 billion to NEC, which might halt many developmental projects in the country. The APCC also recommend NEC to approve 4.5 percent Growth Domestic Product (GDP) growth rate for the upcoming financial year 2010-11, while it was 3.3 percent in the ongoing fiscal year. Meanwhile agriculture sector growth is projected at 3.8 percent for the coming fiscal year while it was 2 percent in the current fiscal year. For 2010-11, major crops will contribute the growth in agriculture sector at 3.7 percent, and minor crops at 3.0 percent. Meanwhile livestock will grow by 4.2 percent, fisheries 2.0 percent and forestry at 2.5 percent. Manufacturing sector is projected at 5.6 percent and services sector at 4.7 percent. The target of inflation (Consumer Price Index) for 2010-11 is set at 8 percent. The inflation target for the current fiscal year was 12 percent, however it is still fluctuating at 13 percent. It was emphasised in the meeting that ongoing projects should be completed on priority basis within available fiscal space. While reviewing PSDP and commenting on the PSDP 2010-2011, the Secretary Planning said that during current financial year, development budget faced severe financial constraints. However, the Government was able to manage it by prioritising the projects to ensure early completion. The Provincial Representatives also highlighted various issues regarding development projects being implemented by the Federal Government in respective province under the Federal PSDP. However, the Deputy Chairman Planning Commission stressed the need to work in collaboration and resolve all outstanding issues amicably. The provinces may concentrate on investment in social as well as infrastructure sectors as per their priorities integrating with the national objectives set under plan. The representatives of provinces also assured that substantial funds would be diverted to development works under expected proceeds of 7th NFC Award.