ISLAMABAD -  The federal government has announced a 40 percent increase in its development budget over the next financial year.

Presenting the federal budget in National Assembly on Friday, Finance Minister Ishaq Dar said the Public Sector Development Programme would have its funding increased from 715 billion rupees to 1,001 billion rupees for 2017-18, around Rs200 billion higher than the current fiscal year. Some 1,148 projects will be funded during the fiscal year 2017-2018.

Out of the total allocation of Rs1,001 billion for the federal Public Sector Development Programme (PSDP), Rs838.57 billion will be funded through local component, while Rs162.43 billion will be funded through the foreign exchange component.

In the current fiscal year 2016-2017 the total PSDP allocations were Rs800 billion.

An amount of Rs242.5 billion are allocated for special programmes in the PSDP 2017-2018, which includes, Rs45 billion for relief and rehabilitation of the IDPs, Rs45 billion for security enhancement, Rs40 billion for federal developmental programme, Rs30 billion for PM Global SDGs Programme, Rs20 billion for PM’s Youth Initiative, Special Gas Infrastructure Development Fund Rs25 billion, Energy for All Rs 12.5 billion and a special provision for completion of CPEC project of Rs5 billion.

The Higher Education Commission ( HEC) will get Rs35.7 billion against the allocation of Rs21.5 billion in FY 2016-2017, water sector will get Rs36.7 billion, energy sector will get Rs60.9 billion, and the Ministry of National Health Services, Regulations and Coordination will get Rs48.7 billion against previous allocation of Rs25 billion.

An amount of Rs15 billion has been allocated for the Pakistan Atomic Energy Commission (PAEC).

Kashmir Affairs and Gilgit-Baltistan Division will get Rs43.6 billion, the interior division will get Rs15.6 billion, Ports and Shipping Ministry Rs12.8 billion, and States and Frontier Regions Ministry Rs26.9 billion.

Ministry of Planning, Development and Reforms will get Rs16.7 billion, and the Ministry of Petroleum and Natural Resources will get Rs554 million.

Communication will get Rs333 billion, which includes allocation of Rs320 billion for the National Highways Authority (NHA).

Out of the allocation for communication, Rs13 billion are allocated for the Green Line Bus Rapid Transit system.

Rs14.7 billion are allocated for a total of 13 new schemes in communication, out which Rs12 billion will go to roads in the Punjab.

Railways Division will get Rs42.9 billion including Rs9.3 billion for the new projects.

Housing and Works will get Rs10.39 billion, Finance Division Rs18.94 billion, Defense Production Division Rs4.5 billion, Aviation Division Rs4.3 billion, CADD Rs5.2 billion, and Commerce Division Rs1.2 billion.

Science and Technology Research Division will get Rs2,427.947 million, and Revenue Division will get Rs790.1 million.

Moreover, for National Food Security and Research Division Rs1,614.266 million have been allocated.

For Inter-Provincial Coordination Division Rs3 billion have been allocated and for information technology Rs1.5 billion have been earmarked.

Govt sets aside Rs36.7bn

for water sector

The government has allocated a sum of Rs36.7 billion for water sector under the Public Sector Development Programme (PSDP) in the fiscal year budget 2017-18.

A total allocation of Rs1790 million has been made for 33 new projects while the remaining PSDP amount has been allocated for the ongoing water schemes.

For various irrigation/multi-purpose dam projects, however, the allocations recommended by the planning ministry for the next budget will be around Rs2,800 million.

A sum of Rs1000 million have been allocated for Nai Gaj Dam, Dadu against the demand of Rs10 billion, Rs10 million have been allocated for Naulong Dam, Balochistan, against the demand of Rs5.3 billion. For Kurrum Tangi dam stage-I, located in North Waziristan, Rs 200 million have been allocated against the demand of Rs3495 million. Similarly, for Kurrum Tangi dam stage-II, located in North Waziristan, Rs100 million have been allocated against the demand of Rs6,000 million.

For Kachhi Canal project phase-I, located in Balochistan, Rs10 billion were allocated against the demand of Rs17.2 billion. While for the Rainee Canal Project (Phase-I and II) Ghotki, Sukkur and Khairpur Sindh Rs1 million have been allocated against the demand of Rs6.3 billion.

For Right Bank Irrigation and Drainage Project (RBOD-I), Rs900 million have been allocated, Rs1200 million for RBOD-III. For RBOD-II, the demand was Rs11 billion but an allocation of Rs6.5 billion has been made.

To control water logging due to Muzaffargarh and TP-Link Canal, Kot Addu, Rs2.2 billion have been allocated against the demand of Rs4 billion.

For Nai Gaj Dam project in Dadu Rs 1.5 billion have been allocated, For Toiwar/Batozai Storage Dam in District Saifullah Rs1.1 billion have been allocated. For Darwat dam project Jamshoro/Thatta, Rs 800 million have been allocated.