Rs800b to be allocated for development budget for FY23
ISLAMABAD: The incumbent coalition government is all set to present its first pro-people, business-friendly and progressive budget for the fiscal year 2022- 23 in the Parliament on June 10
(Friday), with special focus on fiscal consolidation to contain budget deficit. The budget would be presented by Federal Minister for Finance and Revenue, Miftah Ismail.
The coalition government, which came into power just months ago, may unveil over Rs9 trillion budget. Sources privy with the development, said that a major chunk of the new budget will be spent only on debt servicing of Rs3523 billion and Rs1586 billion will be allocated for defense. The finance ministry will have to borrow over Rs4 trillion to run its operations, thanks to the hefty debt servicing cost.
The cost of pensions is Rs550 billion and the running of the civil government consumes only Rs550 billion, the sources said.
The coalition government has decided to allocate Rs800 billion for the Public Sector Development Programme (PSDP) in the next fiscal year. Sources have told ARY News that the development
budget of Rs800 billion has been proposed for the next financial year, out of which Rs538 billion will be allocated for federal ministries and departments. According to sources, it has been proposed to allocate Rs 121 billion to the National Highway Authority (NHA), while Rs96 billion has been proposed for water resources. It has been proposed to allocate Rs60 billion to Cabinet Division for development works.
Rs50 billion has been proposed for the development of the merged tribal districts in the Khyber Pakhtunkhwa, while Rs96.36
billion has been proposed in the development budget for Azad
Kashmir and Gilgit-Baltistan.
Sources further said that in the energy sector, a development budget of Rs49 billion has been proposed for Pakistan Electric
Power Company (PEPCO) and Rs 33 billion for Railways.
Meanwhile, the government has decided to allocate Rs 25 billion for Atomic Energy Commission, while Rs41.87 billion will be allocated to Higher Education Commission (HEC) and Rs2.5 billion for Aviation. Moreover, the Ministry of Climate Change will be given Rs9.5 billion, while the Housing Ministry will get Rs: 11.60 billion.
It has been proposed to allocate Rs10.47 billion for the Ministry of Home Affairs, Rs 12 billion for the Ministry of Health, Rs 12 billion for the Ministry of Food Security and Rs3.1 billion for Maritime Affairs.
The size of the federal development budget has been set at Rs800 billion for the upcoming fiscal year 2022-23, Rs538 billion
has been proposed to allocate for federal ministries and departments while the major chunk of the budget Rs121 billion will be given to National Highway Authority (NHA).
It is also proposed to allocate Rs96 Billion for water Azad Kashmir and Gilgit-Baltistan’s water resources and Rs60 billion for cabinet division, Rs33 billion proposed for railways. On the
other hand, Rs50 billion for integrated tribal areas of Khyber Pakhtunkhawa and Rs25 billion for Atomic Energy Commission