The provincial government is likely to allocate 70 percent of the total development budget for the ongoing projects to ensure their early completion, while the remaining 30 percent would be sanctioned for the new projects, sources in planning and development department told Business Recorder on Monday.
The sources said that the government of NWFP has already started work on the preparation of draft annual development programme (ADP) for next financial year 2007-08 as the provincial department concerned had sought feedback from administrative secretaries of all departments as well as district co-ordination officers (DCOs) in the province.
According to sources, the planning & development department, a responsible agency of the preparation of the developmental budget has asked other departments to finalise preparation and approval of projects within the framework of policy decisions taken by the government from time to time, so that an adequate portfolio of viable approved projects is ready and available for inclusion in the annual development programme (ADP) as well as for foreign aid agencies.
Although the exact size of the programme cannot be indicated at the initial stage, however, it said that the overall size of the developmental budget of all departments should not be more than 10 percent above the allocations for the current financial year.
The ongoing projects, which have reached a fairly advanced level of implementation should be adequately provided for with the objective of completing them within the fiscal year 2007-08 and efforts should be made to ensure that the schemes which have a direct bearing on the targets to be achieved during the plan period get their due priority.
The departments have been directed to give special attention to the matter of counterpart funds for foreign aided projects, fair advancement of ongoing projects, projects dealing with emergencies, such as flood relief etc and new approved projects while drawing up their development programme for next financial year.
The department in its directives has said that the counterpart funding for the foreign aided projects should be as per the PC-I document. However, if previous utilisation rates are kept in perspective, it is advised that 20 percent of the resources should be allocated enbloc for further distribution to the projects.
The allocations, the department said, would be made on the basis of the availability of funds, past performance and the phasing set in the PC-I. The priority of the new projects would be in accordance with the ranking of projects from the point of view of their economics ie the internal financial rate of return (IFRR) and the internal economic rate of return (IERR). However, the social, pro-poor growth objectives and creation of productive assets criteria would be given due weightage.
For example, if primary or secondary education is to be promoted, the ranking on the basis of economic rate of return is not necessary. Similarly, if regional development is required to be done or infrastructure is to be laid or potable water and other utilities of essential nature are to be provided for improving the quality of life, then the rate of return would not be taken into account. However, it should be ensured at the stage of the approval of the project that maximum revenues are generated after project completion so that O&M cost of the project is recovered.
The planning department has also prepared a special proforma and it had directed all departments to workout their programmes on the net basis and information supplied in it and all figures in the relevant columns of the proforma are to be indicated in million rupees.
The procedure adopted further said that the scheme proposed for inclusion in the programme should be arranged in order of priority within each sector/sub-sector so that if resources fall short of requirements, low priority schemes may be either dropped or allocations for such schemes reduced.
The government would give priority to core projects as identified in the ADP 2006-07 and such projects would be adequately funded and the amount of foreign aid would be utilised separately.
The planning department has urged on the concerned departments to indicate their programmes after full deliberations so that request for re-appropriation immediately after the commencement of the fiscal year can be avoided. "As a policy the planning and development department would not entertain requests for re-appropriation during the July-December period," the directives further said.
The approved schemes would be included in the portfolio. However, if departure from this rule is considered essential then full justification should be furnished. The provincial government would also give special attention to new initiatives programmes of the government with special emphasis on pro-poor growth, poverty alleviation and creation of productive assets.
A cleansing exercise of the existing portfolio would also be conducted and schemes of non-development nature would not be reflected in the ADP proposal. The departments have been asked to return the completed proforma by March 1.
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