News
Tuesday, June 11, 2013
NEC approves Rs 1.155 trillion development outlay for 2013-14* Power sector allocation increased to Rs 284 billion
* Rs 59 billion earmarked for new dams
* GDP growth target set at 4.4%
By Sajid Chaudhry
ISLAMABAD: The National Economic Council (NEC) on Monday approved Rs 1.155 trillion national development outlay for fiscal year 2013-14, including Rs 540 billion federal Public Sector Development Programme (PSDP) and Rs 615 billion development projects for the provinces.
The NEC met in the chairmanship of Prime Minister Nawaz Sharif at the Prime Minister’s Office. Macroeconomic Framework approved by the NEC for the fiscal year 2013-14 sets gross domestic product (GDP) growth target at 4.4% of the GDP with growth targets in agriculture at 3.8%, manufacturing 4.5%, services sector 4.6%, and exports target of $26.6 billion.
Allocation for the Federal Public Sector Development programme (federal development budget) has been set at Rs 540 billion and all four provinces would be spending Rs 615 billion under their Annual Development Plans (ADPs) in upcoming fiscal year 2013-14. Rupee component in federal PSDP is to be Rs 431 billion and federal government would arrange Rs 105 billion from (foreign exchange component) foreign sources to finance development projects.
The NEC has abolished Peoples Works Programme II (PWP-II) mainly having discretionary development funds for the prime minister, however, Peoples Works Programme I (PWP-I) name has been changed to Tameer Watan Programme with an allocation of Rs 5 billion for special schemes. A Rs 42 billion allocation has been made for the development programmes in Azad Jammu and Kashmir, Gilgit-Baltistan that would be financed from federal PSDP.
A major allocation of Rs 225 billion has been approved for power sector out of which Rs 107 billion would be spent from PSDP and Rs 118 billion are to be arranged by the Water and Power Development Authority (WAPDA). Some Rs 59 billion have been earmarked for development of water sector development, including big and small dams. The federal government has made a block allocation of Rs 115 billion for the projects to be included in PSDP on new elected government’s priorities.
The NEC approved Rs 105 billion for the transport sector, Rs 63 billion for National Highway Authority, Rs 31 billion have been allocated as the development budget of railways sector, health and population sector will get Rs 25 billion development budget and education sector is to have an allocation of Rs 25 billion.
The purpose of review of the PSDP projects is to delete the useless projects which have no public utility. Recommendations are to be finalised till July 31 to scrap these projects from the PSDP. The increase in PSDP from Rs 450 billion to Rs 540 billion will be financed through increase in federal revenues, federal minister for planning and development informed media after the meeting.
Courtesy www.dailytimes.com.pk