Development expenditures slashed by 18pc; federal PSDP pitched at Rs650bn

Development expenditures slashed by 18pc; federal PSDP pitched at Rs650bn

ISLAMABAD: The total allocation for national public sector development program (PSDP) has been pitched at Rs1,324 billion for fiscal year 2020/2021, according to budget documents released on Friday.

The total allocated amount is 18 percent lower when compared with Rs1,613 billion allocation for outgoing fiscal year.

The PSDP is the main instrument for improving the socio-economic conditions in the country and achieving the macroeconomic and development activities and targets set by the government, which yield maximum benefits in the shortest possible time for the society.

For the year 2020/2021, National Economic Council (NEC) approved the overall size of PSDP at Rs1,324 billion, which is 2.9 percent of the Gross Domestic Product (GDP).

The salient features of PSDP allocation for 2020/2021 are as follows:

The size of national PSDP estimated in the budget for 2020/2021 showing decrease of 17.91 percent over budget estimates of 2019/2020.

Federal PSDP for the year 2020/2021 has been kept at Rs650 billion, which is lower by 7.27 percent than budget estimates of 2019/2020.

The share of federal ministries/divisions in 2020/2021 PSDP is Rs418.67 billion which indicates an increase of 20.22 percent over budget estimates of 2019/2020.

The corporations’ PSDP for 2020/2021 has been placed at Rs158.32 billion which is lower by 19.94 percent as on the budget estimates of 2019/2020.

An amount of Rs710 billion has been allocated in the budget 2020/2021 for COVID Responsive and other natural calamities program.

Earthquake rehabilitation and reconstruction authority (ERRA) has been allocated Rs3 billion in the budget 2020/2021.

The provincial development program for 2020/2021 has been estimated at Rs674 billion as against Rs912 billion in budget estimates 2019/2020, showing a decrease of 26 percent.