Saturday, May 23, 2009
ISLAMABAD: Sardar Aseff Ahmad Ali, Deputy Chairman Planning Commission, has said next development budget outlay will be around Rs600 billion, including federal government share of Rs400 billion in the Public Sector Development Programme and provincial share of Rs200 billion.
He was speaking at a press briefing here on Friday afternoon at the P Block of Planning Commission where a meeting of the Annual Plan Coordination Committee (APCC) was underway.
Ali said next years GDP growth had been projected at 3.3 per cent which would increase to over 4 per cent keeping in view the size of budgetary allocations amounting to Rs600 billion for next fiscal year, which would trigger economic activities and accelerate growth.
However, he said the GDP growth for the ongoing financial year had been estimated at 2 per cent against 2.5 per cent agreed with the International Monetary Fund (IMF). Last years growth of 5.8 per cent has been readjusted at 4.1 per cent. However, next years inflation target has been projected at 9 per cent.
Although there was no relief as inflation stood at 17.8 per cent, the government had managed to check price rises, he said and hoped the inflation would come down to 14 per cent by June 30.
Ali acknowledged that government policies provided no respite in inflation, but defended the massive increase in wheat support price to Rs950 per 40kg, saying if it were not provided to the farmers, Pakistan would have faced a wheat crisis.
Talking about administrative measures for bringing down inflation, he said earlier magistrates had an effective role to curb inflation at the local level, but the last government changed the system and the local governments had miserably failed to deliver on that front.
He said budgetary allocations would be fine-tuned in the meeting of the National Economic Council (NEC), which was scheduled for July 1. This time, we have got the fiscal space in the range of Rs85 to Rs90 billion, which will be spent in 2009-10 on new development schemes.
However, the main chunk of Rs400 billion would be spent on ongoing development projects. In case, ERRA project allocations were included in the PSDP, available fiscal space for the development budget would increase to Rs105 billion.
To a question, he said Kalabagh dam had not been officially shelved and Pakistan needed more dams. However, those dams would be completed which had complete consensuses from the four federating units. Since Pakistan is a federation, so every water reservoir would be completed after developing consensus.
He said Akhori dam could not be approved as small provinces had raised some objections in the APCC meeting and to that effect he had asked the Ministry of Water and Power to address the reservations of Sindh and NWFP.
He said the government gave paramount importance to Diamer-Basha dam and formal work on it would kick off next year, adding bids had been invited from local and foreign construction companies.
To a question, he said budgetary demand for ongoing development schemes stood at Rs825 billon, but the huge demand had been rationalised keeping in view resources available with the government. He said the secretary finance had assured the Planning Commission that budgetary releases for the PSDP of 2009-10 would be ensured on time so that no project could face any delay.
To a question, he said the government had prioritised various sectors which would be having total focus. The social sector had been put on top and then came water, electricity, agriculture and infrastructure. These sectors development would ensure economic activities in the country.
Ali said the Planning Commission had started chalking out plans for the rehabilitation of Internally Displaced Persons (IDPs) and reconstruction of areas destroyed during the military operation against the militants.
However, he said the projects for reconstruction of IDP areas would be out of PSDP.
ISLAMABAD: Sardar Aseff Ahmad Ali, Deputy Chairman Planning Commission, has said next development budget outlay will be around Rs600 billion, including federal government share of Rs400 billion in the Public Sector Development Programme and provincial share of Rs200 billion.
He was speaking at a press briefing here on Friday afternoon at the P Block of Planning Commission where a meeting of the Annual Plan Coordination Committee (APCC) was underway.
Ali said next years GDP growth had been projected at 3.3 per cent which would increase to over 4 per cent keeping in view the size of budgetary allocations amounting to Rs600 billion for next fiscal year, which would trigger economic activities and accelerate growth.
However, he said the GDP growth for the ongoing financial year had been estimated at 2 per cent against 2.5 per cent agreed with the International Monetary Fund (IMF). Last years growth of 5.8 per cent has been readjusted at 4.1 per cent. However, next years inflation target has been projected at 9 per cent.
Although there was no relief as inflation stood at 17.8 per cent, the government had managed to check price rises, he said and hoped the inflation would come down to 14 per cent by June 30.
Ali acknowledged that government policies provided no respite in inflation, but defended the massive increase in wheat support price to Rs950 per 40kg, saying if it were not provided to the farmers, Pakistan would have faced a wheat crisis.
Talking about administrative measures for bringing down inflation, he said earlier magistrates had an effective role to curb inflation at the local level, but the last government changed the system and the local governments had miserably failed to deliver on that front.
He said budgetary allocations would be fine-tuned in the meeting of the National Economic Council (NEC), which was scheduled for July 1. This time, we have got the fiscal space in the range of Rs85 to Rs90 billion, which will be spent in 2009-10 on new development schemes.
However, the main chunk of Rs400 billion would be spent on ongoing development projects. In case, ERRA project allocations were included in the PSDP, available fiscal space for the development budget would increase to Rs105 billion.
To a question, he said Kalabagh dam had not been officially shelved and Pakistan needed more dams. However, those dams would be completed which had complete consensuses from the four federating units. Since Pakistan is a federation, so every water reservoir would be completed after developing consensus.
He said Akhori dam could not be approved as small provinces had raised some objections in the APCC meeting and to that effect he had asked the Ministry of Water and Power to address the reservations of Sindh and NWFP.
He said the government gave paramount importance to Diamer-Basha dam and formal work on it would kick off next year, adding bids had been invited from local and foreign construction companies.
To a question, he said budgetary demand for ongoing development schemes stood at Rs825 billon, but the huge demand had been rationalised keeping in view resources available with the government. He said the secretary finance had assured the Planning Commission that budgetary releases for the PSDP of 2009-10 would be ensured on time so that no project could face any delay.
To a question, he said the government had prioritised various sectors which would be having total focus. The social sector had been put on top and then came water, electricity, agriculture and infrastructure. These sectors development would ensure economic activities in the country.
Ali said the Planning Commission had started chalking out plans for the rehabilitation of Internally Displaced Persons (IDPs) and reconstruction of areas destroyed during the military operation against the militants.
However, he said the projects for reconstruction of IDP areas would be out of PSDP.
