ECONOMY WATCH
PUBLIC SECTOR DEVELOPMENT PROGRAM 2005-06

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Ensuring the correct utilization of funds is now the core responsibility of the government

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Selected by Zeeshan Ahmed Khan

Sep 26 - Oct 02, 2005
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The total outlay of budget of an economy is always bisected in the categories - the development expenditures and non-development expenditures. If non-development expenditures exceed the development expenditures, it indicates that the country is on way of economic recession while a healthy development allocation indicates that the country is on road to improvement. During 2004-05, the total outlay of Pakistan's budget was Rs.903bn. The amount increased to Rs.1098bn in 2005-06 budget.

The Public Sector Development Program (PSDP) is a comprehensive Pakistan's development expenditures program which makes bulk of amounts available to different departments of government for development purposes. In the last few years, the size of PSDP has considerably increased and lots of developments have been done by using this fund.

In 2004-05, the total size of PSDP was Rs.202bn, which was almost near to the amount of defence expenditure. For current fiscal year, the biggest allocation for development purposes has been made and the size of PSDP is Rs.272bn.

To finance the budget for PSDP, Rs.204bn will be spent by the federal government while provincial governments will share Rs.68bn in this regard. Federal ministries/divisions shall receive Rs.136.396bn to make improvements in their concerned domains. This allocation is 41% more than last year's. Government corporations shall receive Rs.36.13bn for development purposes. Again this allocation is 15% more than last year. This year, a new development program is introduced, called Khushhal Pakistan Fund, with the initial disbursement of Rs.5bn. Collectively, all special development programs including Khushal Pakistan Program 1 & 2, will get Rs.17.798bn. These special programs aim at developing roads, highways, hospitals, schools etc. These are special programs running under the government's poverty-reduction strategy. Focusing the need of development of neglected and least developed areas, special allocation of Rs.68bn has been made . This fund will be used for the development of AJK, FATA and Northern Areas. Provincial governments are also in line with federal government and have increased their allocations for PSDP by 26% this year.

Governments are formed to serve people and to increase their standards of living. Today, government is claiming that Pakistan is on the road to becoming Asian Tiger and that the government has more funds available than ever before. Government's intentions are very clear from the increasing size of PSDP. Now the only need is to utilize these funds with fairness and honesty. If we continue to keep our past attitudes, developments will only be made on papers. Thus, ensuring the correct utilization of funds is now the core responsibility of the government. Prime Minister's honesty is doubtless. He has to create such check and balance by himself but if Prime Minister announces in advance that he will visit "this and that" area to check the progress of development, he might never cope up with corruption. He has to secretly monitor the development in order to make sure that funds are utilized correctly. We hope that the government will acknowledge and consider the need of these responsibilities and create a roadmap to accomplish them.

SIZE OF PSDP (RS. IN MILLION)

CLASSIFICATION

2005-2006 BUDGET

FEDERAL PROGRAMME

204000

Federal Ministries/Divisions

136396

Cabinet Division

666

Pakistan Atomic Energy Commission

5739

Pakistan Nuclear Regulatory Authority

111

Commerce Division

121

Communications Division

584

Ministry of Ports & Shipping

3744

Culture Sports & Youth Affairs Division

962

Tourism Division

31

Defence Division

705

Education Division

4521

Higher Education Commission

11700

Environment Division

2931

Establishment Division

44

Finance Division

7250

Central Board of Revenue

2521

Food, Agriculture & Livestock Division

9136

Health Division

9439

Industries and Production Division

590

Information & Broadcasting Division

454

Information Tech. & Telecom Division

3301

Interior Division

6589

Labour Manpower & OP Division

562

Law Justice and Human Rights Division

4770

Local Govt. & Rural Dev. Division

50

Narcotics Control Division

268

Petroleum & Natural Resources Division

460

Planning and Development Division

3204

Population Welfare Division

4371

Railways Division

9849

Science & Technological Research Division

3071

Statistics Division

92

Water & Power Division

35630

Women Development Division

489

Social Welfare & Spl Education

787

Housing & Works Division

1559

Foreign Affairs Division

100

Corporations

36130

WAPDA (Power)

15580

WAPDA - Village Electrification

500

National Highway Authority

20050

Special Programme

17798

Kushal Pakistan Programme-I

4420

Kushal Pakistan Programme-II

7500

Khushal Pakistan Fund

5000

Provision for Less Developed Areas

878

DERA

0

Special Area

13676

Azad Kashmir

5126

Northern Areas

3400

FATA(Including Special Programme)

5150

Provincial Programme

68000

Total PSDP

272000