NEC meets tomorrow to approve Rs.825 b next development budget

PM Gilani

ISLAMABAD: The meeting of National Economic Counsel (NEC) will be held tomorrow (Friday) to approve a Rs.825 billion next development budget.

The meeting of National Economic Counsel is scheduled to meet tomorrow (Friday) which would be chaired by Prime Minister Yousaf Raza Gilani.“The volume of Public Sector Development programs (PSDP) may increase in the meeting if provinces would demand for increased funds,” said the sources, adding that after the approval by the NEC the programs would make a part of the budget.

In the meeting a Rs 825 billion development budget would be approved out of which Rs 350 billion has been recommended for federal and Rs 475 billion for provincial development budget and a Rs 120 billion foreign aid was also expected to be received during the next financial year starting from July 1,2012.In the meeting, Finance Minister would also brief the NEC about the state of the national economy.The Annual Plan Coordination Committee (APCC) had already recommended a Rs.825 billion development budget to the National Economic Counsel for next financial year staring from July 1, 2012.

The Planning Commission is currently running 1,252 projects which have a total cost of Rs2.83 trillion, however the local allocations for this fiscal year amounts to Rs253.5 billion, whereas funding amounting to Rs36.5 billion would be provided from foreign aid.The federal government, for current fiscal year 2011-12, was set Public Sector Development Programme (PSDP) Rs730 billion which is ten percent more than last year’s PSDP of Rs663 billion.

Out of Rs730 billion includes federal development outlay of Rs290 billion which is four percent higher than the 2010-11 allocation of Rs280 billion. Out of Rs290 billion allocations for federal development, Rs10 billion have been earmarked for ERRA and Rs430 billion for provincial Annual Development programmes. Rs373 billion were earmarked in 2010-11 for the provinces to be spent through their Annual Development Programmes. – Onlinenews