Provincial development budgets: Rs 182 billion saving projected

The federal government has projected a saving of Rs 182 billion in the allocation of provincial development budgets for the current fiscal year and estimated 5.5 percent budget fiscal deficit on the premise of saving. Sources said as per revised budget estimates for the current fiscal year, provincial development budget was estimated at Rs 930 billion for the current fiscal year as opposed to Rs 1,112 billion earmarked in the budget and consolidated fiscal deficit was premised on the revised estimates. However, sources on condition of anonymity added that achieving upward revised estimates seems challenging.
They added that a saving of Rs 94 billion is estimated from development allocation for Punjab government for the current fiscal year, Rs 39 billion saving from allocation for Sindh government, Rs 31 billion saving from Khyber Pakhtunkhwa and Rs 17 billion saving in development spending is projected from allocation of Balochistan government. An official said that delay in transfer of provincial share from revenue collection in divisible pool may be one of the factors for projecting saving in development spending by the provinces.
The development budget of Punjab government has been revised down from Rs 574 billion to Rs 480 billion for the current fiscal year, Sindh government from Rs 237 billion to Rs 198 billion while development allocation of Khyber Pakhtunkhwa was revised down from Rs 193 billion to Rs 162 billion and development allocation for Balochistan government was revised downward to Rs 89.20 billion from Rs 106.752 billion for the current fiscal year.
The federal assistance for Punjab development program was slashed to Rs 110 billion from Rs 125 billion and less provincial contribution for the province to Rs 369 billion from Rs 448 billion. However cash assistance for Punjab was increased to Rs 20.803 billion from Rs 8.5 billion.
The federal assistance in Sindh development program was decreased from Rs 43 billion to Rs 27 billion and less provincial contribution was contracted to Rs 171 billion from Rs 193 billion.
The federal assistance for Balochistan development program was decreased from Rs 6 billion to Rs 5 billion and less provincial contribution was decreased to Rs 83 billion from Rs 100 billion.
However, federal assistance for Khyber Pakhtunkhwa development program was increased to Rs 31 billion from Rs 29 billion but less provincial contribution decreased to Rs 131 billion from Rs 164 billion.