Web Desk
The Annual Plan Coordination Committee (APCC) is expected to recommend a macroeconomic framework and the size of the federal development outlay in the range of Rs900-1,000 billion for the upcoming budget of the fiscal year 2023-24, as reported by The News on Friday.
In the federal budget, the government is set to propose an Rs90 billion allocation for the controversial Sustainable Development Goals Achievement Programme (SAP) for parliamentarians, compared to the revised estimates of Rs111 billion in the outgoing financial year.
Efforts are underway to increase the allocation of the SDG Achievement Programme from Rs111 billion to Rs116 billion for the current fiscal year.
Reliable sources in the Cabinet Division revealed that parliamentarians from Balochistan and Sindh provinces predominantly presented flood-related schemes under the SDG Achievement Programme in the current fiscal year.
Considering that the World Bank and Asian Development Bank (ADB) are providing $3 billion in loans for flood-related schemes, it is essential to establish a mechanism that avoids overlapping expenses borne by the national exchequer.
Approximately 50 to 60% of small development schemes in Sindh and Balochistan for the outgoing financial year were related to floods.
There are reports that a political party, a major ally of the ruling coalition at the federal level, has demanded that all funds on behalf of their parliamentarians be handed over to the political leader, who would then distribute shares to each parliamentarian from the party.
The SAP program benefits all major allies of the Pakistan Democratic Movement-led government, with funding increasing from the initial Rs68 billion to Rs116 billion in the ongoing financial year.
The APCC, scheduled to meet at the Ministry of Planning, will consider approving the macroeconomic framework, which includes a real GDP growth rate of 3.5% and a CPI-based inflation rate of 21% for the upcoming budget of 2023-24.
According to a working paper prepared by the Ministry of Planning, the Ministry of Finance has set an indicative budget ceiling for the Public Sector Development Programme (PSDP) at Rs700 billion for the next fiscal year. However, the Minister for Planning hopes to increase it to Rs800 billion under the directives of Prime Minister Shehbaz Sharif.
With the proposed allocation of Rs200 billion for the Viability Gap Fund (VGF) through public-private partnerships (PPP), the total size of the federal PSDP would be proposed at Rs1,000 billion for the next financial year.
The allocation for the National Highway Authority (NHA) in the proposed PSDP would be reduced, ranging from Rs90 billion to Rs100 billion for the next budget, primarily due to the NHA’s inability to fully utilize the allocated amount in the ongoing financial year.
The government is planning to propose allocations for flood mitigation and reconstruction efforts in the coming financial year. Additionally, consideration is being given to allocating funds for the Diamer Basha Dam in the budget for 2023-24.
