Rs 663 billion allocated for development

June 06, 2010

ZAFAR BHUTTA

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The government has earmarked Rs 663 billion for development in the 2010-11 budget, which envisages Rs 280 billion federal and Rs 373 billion provincial share. According to budget documents, Rs 10 billion has been earmarked for Erra for financial year 2010-11.

Despite the fact that the country is undergoing severe energy crisis, the government has reduced allocation of funds for power sector to Rs 118.343 billion from Rs 141.87 billion for ongoing financial year. Of total earmarked amount, Pakistan Electric Power Company (Pepco) will generate Rs 76.88 billion from its own resources for new power projects.

Water sector has been allocated Rs 28.4 billion under federal Public Sector Development Programme (PSDP). The main projects include: Raising of Mangla Dam including resettlement, Kachhi Canal (Phase-I), Rainee Canal (Phase-I), Revamping/Rehabilitation of Irrigation and drainage system of Sindh, Extension of Right Bank Outfall Drain from Sehwan to Sea (RBOD-II), Dadu & Thatta Districts of Sindh and Darwat Dam, Jamshoro, Sindh. The allocation for Pakistan Atomic Energy Commission (PAEC) has also been reduced from Rs 21.1 billion for ongoing financial year to Rs 15.22 billion for 2010-11.

An amount of Rs 2.76 billion has been earmarked for ongoing Chashma Nuclear Power Project C-2 Mianwali, Rs 10.37 billion for Ch-3 and 4. The government has reduced drastically the allocation of Pakistan Nuclear Regulatory Authority to Rs 246.9 million from Rs 2.4 billion for ongoing financial year. Transport and Communication sector has been allocated Rs 69.3 billion--Rs 44.6 billion for NHA, and Rs 13.6 billion for Railways--to ensure economic integration and balanced regional development.

Allocation for the health sector has also been slashed, which stands at Rs 16.9 billion against Rs 18.5 billion of ongoing financial year. Major programmes include EPI (Rs 2.7 billion), National Programme for Family Planning and Primary Health Care (Rs 5.8 billion), National Maternal, Neonatal and Child Health Programme (Rs 2.3 billion) and Health System Strengthening and Policy Programme (GAVI) with an allocation of Rs 1.4 billion.

Allocation for education and Higher Education Commission is Rs 21.4 billion, which is 7.6 percent of federal PSDP, so as to ensure availability of skilled labour to match the highly competitive world market. Allocation for Special Areas (AJK, G-B & FATA) is Rs 17.9 billion with a view to accelerate development in less developed areas. Allocation for Special Programmes (PWP-1, PWP-lI) is Rs 30.0 billion.

The allocation for other federal ministries include: Rs 14.5 billion for Finance Division, Rs 13.6 billion for Railways, Rs 9.3 billion for Planning and Development Division, Rs 1.08 billion for Food and Agriculture, Rs 3.2 billion for Industries and Production Division, Rs 5.5 billion for Interior Division, Rs 3.8 billion for Defence Division, Rs 3.6 billion for Housing and Works, Rs 3.6 billion for Cabinet division, Rs 4.11 billion for Population Welfare Division, Rs 1.6 billion for Science and Technological Research Division, Rs 885.6 million for Rs Livestock and Dairy Development Division, Rs 1 billion for Law and Justice Division, Rs 1 billion for Environment Division, Rs 1 billion for Special Initiative Division, Rs 623.4 million for Petroleum Ministry, Rs 474.1 million for Commerce Division, and Rs 518.6 million for Ports and Shipping Division.